State of GovTech Market Report - 2016

24 states in the Fortune 1001. Wal-Mart $482California $265 2. Exxon Mobil $246 8. General Motors $152New York $152 18. Amazon $107Texas $10633. Anthem $79Pennsylvania $79Florida $76Ohio $68

Illinois $6551. Intel $55Michigan $53New Jersey $51North Carolina $50Massachusetts $49Virginia $48Washington $4562. Coca-Cola $44Georgia $44Maryland $41

Arizona $40Minnesota $37Wisconsin $3585. American Exp. $34 Tennessee $33 Oregon $33Indiana $31Kentucky $30Alabama $29Louisiana $28100. Northwestern Mutual $28

Source: Fortune 500; Center for Digital Government

(in billions)

Administration& Finance

Health & Human

ServicesEducationPublic Safety

& Justice Transportation Public WorksEnvironment

& Natural Resources

The government market is anindustry of industries.

Started 1991$1.48 billion market capNASDAQ: EGOV

Started 1991$1.3 billion market capNASDAQ: TASR

Started 1975$3.45 billion market capNASDAQ: MMS

Started 1966$6.11 billion market capNYSE: TYL

Technology and social trends are reshaping the landscape of government.Technology• Mobile Platforms • Ubiquitous Connectivity • Cloud/SaaS• Big Data/Analytics• Internet of Things (IoT)

Social• Transparency/Open Gov• Structural Fiscal Constraints• Workforce Demographics• App Economy

Government is doubling down on technology.

$99.8 billionis the estimated IT spend at the state and local

government levels.

State and Local IT Spending 2016 vs. 2015

2015 2016 State $46 Billion $47.4 Billion

Local $51 Billion $52.4 Billion

Total $97 Billion $99.8 Billion

Source:

The average RFP is on the street for only 21 days.

10,000Number of IT vendors engaged in

GovTech business.

Source: e.Republic

15,000Statewide IT contracts across

the country.

Source: e.Republic

30,000IN 2016

Number of IT-related opportunities

Source: e.Republic (2016)

2011-16 IT Procurement Volume


2011

16,000

2012

21,000

2013

23,100

2014

25,200

2015

29,800

2016

33,000*

2015 IT Opportunity Breakdown


Administration& Finance

Health & Human

ServicesEducationPublic Safety

& Justice Transportation Public WorksEnvironment

& Natural Resources

2016 Estimated GovTech IT Spend

$8.5 Billion

$25.9 Billion

$10 Billion

$7.5 Billion

$7.5 Billion

$22.4 Billion

$7.3 Billion


State & Local Government Is an Industry.There are over 89,000 local government agencies across the country that are composed of cities, counties, townships and special-purpose government agencies.

What is a GovTech company?GovTech companies are firms that have state, local and federal government as their primary market focus and derive the majority of their revenues from the public sector. GovTech companies can be categorized among four domains:

GovTech Market Model

Source: e.Republic Labs (2015)

9 years oldAverage Age of a GovTech 100 Company

Source: Crunchbase, e.Republic (2016)

2Average Number of Foundersin a GovTech 100 Company

Source: Crunchbase (2016)

23Number of Acquisitions Made by GovTech 100 Companies


2,367Number of Articles Written

on GovTech 100 CompaniesSource: Crunchbase, e.Republic (2016)

323Total Cumulative Investorsin GovTech 100 Companies


Global Investors in GovTech Companies

US-based Investors in GovTech Companies

5Source: Crunchbase (2016)

SINCE 1990 Number of GovTech 100 IPOs

What changedin 2016?

$185,950,000


IN 2016

Amount Raised By GovTech 100 Companies


2016 GovTech 100 Funding

$26,564,286IN 2016

Average GovTech 100 Company Round



Administrative Companies raised the most funding.

GovTech 100 Percentage of Funding in 2016 18.2%

Service Delivery

27.3%Smart Infrastructure

54.5%Administration

16,317 - 27,845IN 2016

Number of GovTech 100 Company Employees

Source: Crunchbase, LinkedIn, e.Republic (2016)

1IN 2016 GovTech 100 Company Closed


5IN 2016 Number of GovTech 100 Companies Acquired


GovTech 100 Acquisitions in 2016



Acquisition Sectors

GovTech 100 + 2017.

State of GovTech Market Report - 2016

Government & Nonprofit

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