The document provides an overview of the growing GovTech market, including: 1) The GovTech industry was formed to make government processes more efficient and secure in response to public demand for modernized systems. 2) The U.S. government spends over $3 trillion annually across 19 million employees, though only 7% goes to IT currently. 3) Federal programs like the Modernizing Government Technology Act and FedRAMP are helping drive adoption of new technologies in the public sector. 4) While digital transformation is still nascent, software solutions around platforms, data analytics, citizen engagement and more are accelerating change.

1. GovTech Market Overview
February 2019
Kyle Howard-Johnson & Todd Clapp

2. 2
▪ Investor’s Perspective
• Increasing public sector spend provides a strong foundation of demand to support
future growth while streamlined procurement processes reduce barriers to entry,
allowing smaller players to enter the market
• The relative youth of this industry has left it largely fragmented without a clear leader
and consolidation still in its early stages
• Small, innovative players with limited market penetration are primed to capitalize on
this growing opportunity with the support of a growth equity investment
GovTech Overview
▪ The Government Technology (“GovTech”) industry was formed in response to
public demand for more efficient, affordable, and secure government processes
from a segment plagued by antiquated systems and outdated procedures
• In a day and age of rapid technological innovation, citizens expect the public sector’s
level of technical sophistication to be on par with other aspects of their lives
• Only recently have government entities begun leveraging innovative and agile solutions
to meet increasing operational demands and produce more citizen value while
remaining adherent to stringent budgets

3. 3
Substantial and Growing Market Opportunity
▪ The U.S. State and Local Government System employs more than 19 million
people and spends over $3 trillion annually
• U.S. Government IT spending accounted for roughly $200 billion in 2018, representing less
than 7% of total government spend
• The Federal Government has recognized the widening innovation gap and passed legislation
to catalyze the public sector’s tech adoption process
Sources: Forrester, 2017, US Government Sector Tech Spending Trends, 2017 to 2018; ITDashboard.gov, 2018; GovTech Navigator,
Center for Digital Government, 2012 Census of Governments
50
States
3k+
Counties
19k+
Cities
38k+
Special Districts
$73 $76 $80 $83 $78 $85
$100 $105 $108 $108 $112
$117
2013 2014 2015 2016 2017 2018
Federal State & Local
$173 $181 $188 $191 $190
$202
U.S. Government IT Spend ($bn)

4. 4
Federal Programs Support Tech Adoption
Sources: FedRAMP.gov, 2018; Executive Office of the President, 2018, Implementation of the Modernizing Government Technology
Act; Center for Digital Government, 2018
▪ The Modernizing Government
Technology (MGT) Act allocates
funds to drive tech adoption
• The act allocated $500 million
between 2018 and 2019 to tech
investment initiatives
• The MGT Act will facilitate agencies’
adoption of tech solutions that
improve service delivery to the
public while securing sensitive data
and systems in a more cost effective
manner
$579
$624
$660
$686
$703
2014 2015 2016 2017 2018
Federal Grant Funding ($bn)
▪ The Federal Risk and Authorization Management Program (FedRAMP) provides
a standardized approach to securing and monitoring cloud products and
services
• FedRAMP established a repository of approved solutions, significantly shortening the
procurement process and saving agencies both time and money

5. 5
Digital Transformation is Nascent…
Sources: GovLoop, 2018, Looking Ahead: Government’s Technology Priorities; GovTech, 2018, Digital States Survey; IBM, 2018,
Digital Transformation
Digital Reinvention
Digital Transformation / Lean Government
Legacy Modernization
Basic
eGovernment
Advanced
eGovernment
Digital
Government
AI-Enabled
Government
Today
▪ Despite market tailwinds provided by federal regulations, the public sector’s
digital transformation remains in its early stages
• According to a survey conducted by GovLoop, 87% of public servants indicated that their
respective agency’s technology meets their needs either sometimes or not at all
• 43% of state agencies have either implemented a tech startup’s solution or are in the process
of piloting one, demonstrating the substantial room for incremental tech adoption

6. 6
… But Software is Driving Change
Sources: Accela, 2018, Why has SaaS Become the Standard for Government Agencies, Top 7 Reasons Government Leaders Are
Moving to the Cloud
▪ Public sector-focused software solutions are accelerating tech adoption by
providing enhanced citizen value and reducing costs
• Citizens demand consumer-grade experiences from government entities, forcing the public
sector to adopt private sector practices and leverage cloud-based solutions
• SaaS solutions remove the burden of building and maintaining legacy IT infrastructure,
increasing organizational flexibility by:
− Reducing costs: minimal upfront capital expenditures and automated updates for the
lifetime of the product
− Increasing security: cloud solutions secure, protect, and control data while remaining
compliant with an evolving regulatory environment
− Improving system integration: increased interoperability extends processes and data
across systems, reducing the demand for highly skilled IT professionals
− Creating efficiencies: increased data consumption and processing abilities provide
actionable insights to optimize operations

7. 7
Citizen
Engagement
GovTech Software Market Map
Note: this landscape is intended to be a representative sampling and is not an exhaustive list.
Please direct inquiries to kyle@catalyst.com.
GovTech Software
Municipalities
Platforms
Administration & Finance
Information &
Data Analytics
Point Solutions
Smart Cities,
Logistics & Utilities
Law Enforcement &
Public Safety Agencies

8. 8
GovTech Software Market Map
▪ Provide suites of solutions to government entities that serve as “one-stop-
shops” to satisfy a variety of technological needs and facilitate the digital
transformation of the public sector
▪ Achieve a competitive advantage by reducing the number of procurement
processes for government entities by going broad as opposed to deep
▪ Achieve a pricing advantage by bundling solutions together at a reduced price
point, helping mitigate budgeting tensions
Platforms
▪ Provide solutions
intended to make
transportation,
utilities, and cities
run more
efficiently,
effectively, and
safely
▪ Achieve a
competitive
advantage by
promoting safer,
cleaner, and more
efficient cities,
making them more
enjoyable places
to live and
reducing their
environmental
impact
Smart Cities,
Logistics & Utilities
▪ Provide solutions
tailored
specifically to the
needs of law
enforcement and
public safety
agencies
▪ Achieve a
competitive
advantage by
catering to a vital
piece of the
federal system
that is not only
directly
responsible for
constituent well-
being but also
highly scrutinized
Law Enforcement
& Public Safety
▪ Provide solutions
designed to increase
citizen engagement,
driving positive
change through
public sentiment
▪ Provide solutions
designed to arm
officials with
actionable
intelligence to
optimize operations
▪ Provide solutions
designed to support
back office
functions, driving
increased efficiency
and efficacy
Citizen Engagement
Information & Data
Analytics
Administration &
Finance
▪ Achieve a competitive advantage by providing highly specialized point
solutions that go deep rather than broad and are often more comprehensive
than products provided as a part of broader platforms
Point Solutions
Municipalities
▪ Leading GovTech software providers offering robust platforms catering to a variety of different
government functions – platforms often take advantage of the fragmented nature of this market and
evolve through the acquisition of differentiated point solutions
GovTech Software

9. Please send any inquiries to kyle@catalyst.com