A high-level overview of the state and local government technology (GovTech) market. If you're interested in including your company in future research and editorial, please submit it at http://labs.erepublic.com/startups.

1. GovTech Market Snapshot v1
LABS
Source: e.Republic Labs (2015)

2. This report is a current snapshot of our ongoing work at e.Republic Labs.
Its aim is to help existing companies, startups, investors and government
agencies better understand the emerging GovTech market.
e.Republic Labs, through its parent company, has been tracking digital technology in the
public sector since 1987. In the last several years, developments like mobile platforms,
ubiquitous connectivity, cloud/SaaS services and data analytics have combined with other
trends to drive significant disruption in the government technology market. From open data
to civic tech to the Internet of Things, tech and market changes have opened opportunities
for a new class of companies and products focused on the $175 billion U.S. government
technology industry.
About us
e.Republic Labs is part of e.Republic, home to Govtech.com, Governing.com and the Center for Digital
Government. e.Republic Labs is a catalyst to help educate, accelerate and ultimately scale technology
innovation in the public sector. e.Republic Labs is directed by Dustin Haisler.
Source: e.Republic Labs (2015)

3. Technology Trends Social Trends
Source: e.Republic Labs (2015)
• Mobile Platforms
• Ubiquitous Connectivity
• Cloud/SaaS
• Big Data/Analytics
• Internet of Things (IoT)
• Transparency/Open Gov
• Structural Fiscal Constraints
• Workforce Demographics
• App Economy
Technology and social trends are reshaping
the landscape of government.
This is a uniquely disruptive moment in the evolution of technology, offering a
once-in-a-generation opportunity for governments both small and large to harness
powerful new tools that can dramatically improve public sector outcomes.

4. Government may not be the natural place you would look to for emerging market
opportunities; however, new forces are challenging the way government does
business and providing opportunities for companies.
The convergence of technology and social trends is reshaping
the government market.
There is a new class of companies and products targeting government as a primary
market segment. Equally disruptive, increasing investments from venture capital
firms such as Andreessen Horowitz, are accelerating the pace of change
by injecting capital into a growing cohort of GovTech companies.
Source: e.Republic Labs (2015)

5. 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:
What is a GovTech company?
(1)
Administration
(2)
Service
Delivery
(3)
Civic Tech
(4)
Smart
Infrastructure
Source: e.Republic Labs (2015)

6. Smart Infrastructure
Serves as the infrastructure layer of
government by enabling operational
capacity of physical assets and
systems (e.g., facilities, roads and
utilities) through digital controls,
sensors, self-monitoring predictive
analytics and security. Exemplified by
the Internet of Everything, category
includes smart grid, smart meter, and
the cloud.
Civic Tech
Serves as the engagement layer of
government by supporting citizen
self-services and engagement, using
aggregated reporting, open data and
crowdsourcing to enable citizens to
digitally connect with government.
Administration
Serves as the official record layer or
ledger of government permissions, data
and money in government. Category
includes systems that automate financial,
personnel, case, asset, traffic, construction
and land management records.
Service Delivery
Serves as the transaction layer
of government by enabling the
processing of transactions, payments
and logistics by public employees
or citizens/businesses to fullfill
public service requests and service
delivery. Category would include
systems that automate licensing,
payments and business intelligence
of records.
Smart
Infrastructure
Civic Tech
Administration Services
External
DeliveryOperations
Internal
ProductPlatform Solution
Source: e.Republic Labs (2015)
GovTech Market Model

7. GovTech Market Model
Source: e.Republic Labs (2015)
Smart
Infrastructure
Civic Tech
OpenGov
Streetline
Accela
Tyler Tech
MuniCode
Pondera
MuniRent
Administration
Services
External
DeliveryOperations
Internal
SeeClickFix
GovDelivery
NIC
Platform Solution Product
Example GovTech Companies
OpenGov enables agencies
and citizens to have greater insights into
public financial data through the use of
online dashboards and reporting tools.
Pondera is a fraud-detection-as-a-
service system that analyzes public
benefit transactions (e.g., Medicare) and
predicts the likelihood of fraud.
Accela offers a civic cloud that
connects multiple systems of records
(ERP, work orders, etc.) to enable more
efficient and effective operations.
Streetline uses a series
of Internet-connected sensors
to make parking more efficient
and predictable.
NuCivic

8. In addition to the four
market domains of Civic
Tech, Smart Infrastructre,
Administration and Service
Delivery, the public sector
is made up of large vertical
application segments.
GovTech Market Verticals
Operations
Finance
Public Safety
Health & Human Service
Public Works
Information Technology
Source: e.Republic Labs (2015)

9. GovTech Market
Companies
Investors
Not-for-Profits
LABS
Source: e.Republic Labs (2015)

10. Snapshot of New & Existing
GovTech Market Companies
LABS
Source: e.Republic Labs (2015)

11. Snapshot of New and Existing GovTech Market Companies

12. There are over 100 GovTech
companies and counting.
LABS
Source: e.Republic Labs (2015)

13. Snapshot of GovTech
Market Investors
LABS
Source: e.Republic Labs (2015)

14. Snapshot of Investors In The GovTech Space
Source: e.Republic Labs (2015)

15. Sample of recent GovTech market activity:
Source: e.Republic Labs (2015)

16. Snapshot of GovTech Market
Not-for-Profits
LABS
Source: e.Republic Labs (2015)

17. Snapshot of GovTech Market Not-for-Profits
Source: e.Republic Labs (2015)

18. Tech and social
trends are fueling
major shifts in the
way governments
can engage digital
technology.
This market
shift is driving
the entrance of
new companies
specificlly focused
on the $175 billion
government
technology market
— the GovTech
startup.
The GovTech
market is
expanding around
four primary
market segments:
administration, civic
tech, intelligent
infrastructure and
service delivery.
Venture capital
firms, non-profit
foundations and
angel investors
are increasingly
injecting capital
and resources
into this emerging
GovTech market.
Key Takeaways
4 4 4 4
Source: e.Republic Labs (2015)

19. LABS
Source: e.Republic Labs (2015)
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20. Appendix
Government Market Facts
LABS
Source: e.Republic Labs (2015)

21. State & Local Government Is an Industry.
Source: e.Republic Labs (2015)
There are over 89,000 local government agencies across the
country that are composed of cities, counties, townships and
special-purpose government agencies.
# of Cities # of Counties # of Townships
Local
Governments
Local
Governments
Local
Governments
19,422 3,031 16,364

22. State & Local Government Is an Industry.
Source: e.Republic Labs (2015)
There are over 50,000 special-purpose governments,
which include utility and school districts.
# of Special Districts # of School Districts
General
Purpose Gov
General
Purpose Gov
37,203 12,884

23. State & Local Government Is an Industry.
Source: e.Republic Labs (2015)
State and local spending have continued to grow as economic
conditions have rebounded from pre-recession levels.
State and Local
Spending
State and Local
Employees
Overall Spending Employees
$3 trillion 19 million

24. Government Information Technology Spending
Source: e.Republic Labs (2015)
1 2
1
Center for Digital Government (2015) 2
https://www.whitehouse.gov/sites/default/files/omb/budget/fy2015/assets/budget.pdf
State and local information technology spending accounts for
$96 billion dollars of the $3 trillion dollar budget.
State and Local
IT Spending
Federal
IT Spending
Up 2.5% from 2015
$96 billion $79 billion

25. Government
Information
Technology
Trends
Source: e.Republic Labs (2015)

26. LABS
Source: e.Republic Labs (2015)
e.Republiclabs.com