This document discusses the growing GovTech sector and opportunities in technology solutions for the public sector. It notes that while large vendors have historically dominated the government IT market, new pressures around technology trends and societal changes are driving public sector transformation. This has led to rising investment and deal values in GovTech startups and more startups now supplying the UK government. However, issues still exist around financial cycles for SaaS solutions, staff training needs, cybersecurity risks, and fragmented procurement systems.

1. The next opportunity:
GovTech

2. If a monkey can do it...
Source: GovTech.com

3. Participation
e-ID, community forums,
e-petitions etc.
Regulation
AML checks, due
diligence software
etc.
Delivery
healthcare, education,
law enforcement etc.
Infrastructure
digital controls, sensors,
grid etc.
Administration
licences, software, security,
payments, cloud management
etc.
Technology that solves public sector problems
How to think about GovTech

4. Big players owned have historically dominated
Source: Porge Illuminator, Public analysis
FY15 FY16 FY17 YTD
Market share 10 top
vendors by value
43.8% 42.6% 39.1%
UK Government ICT & BPO splend by supplier (£m)

5. New pressures are driving public sector change
❏ Cloud
❏ Artificial Intelligence
❏ Modular software
❏ Internet of Things
❏ Blockchain
❏ Big data
❏ Hyper-transparency
❏ Budget pressure
❏ Workforce demographics
❏ Exemplar reforms
❏ Consumer demands
Technology
trends
Societal
trends

6. Single front
door
Open data sets:
national and local
Digital leaders
*not just
Government Digital
Service
Procurement portal
You have been part of the transformation

7. Value of IT contracts on the UK’s G-Cloud is rising
(1) “The G-Cloud: Revolutionizing the UK Public Sector ICT Supply Chain,” 30 June 2015, DeNove Marketing Sales and Performance.

8. More startups are now supplying the UK government
(1) SMEs can be defined as enterprises that employ fewer than 250 persons and which have an annual turnover not exceeding 50
million euro and/or balance sheet total not exceeding 43 million euros.
UK UK

9. New opportunities are emerging
Source: Tussell
Key: = £100m
Central London
Spend
Key: = £100m

10. Investment into GovTech is on the rise
Source: CBInsights
Volume CAGR ’12-
’16
11%
Value CAGR ’12-’16 42%
GovTech funding to startups in the USA grew 305% betw
Investment in GovTech in the USA ($m)

11. UK GovTech scene is also gaining traction
Source: PwC
UK GovTech deal values ($m)

12. Little brother that grew up
Source: Public analysis of publicly available data

13. Govtech companies are maturing
OpenGov* Accela** Nextdoor*** Palantir*
$100m
$400m
$1.1bn
$20bn
Source: *Techcrunch **govtech.com ***WSJ

14. Strong pipeline of UK and US GovTech companies
Seed
Series A
Series B

15. But issues to be aware of
Source: *Techcrunch **govtech.com ***WSJ
FINANCIAL TIMES
May 2017
NHS hit by major ransomware attack
SaaS government solutions are
probably on 10 year cycles
Staff training required for emerging
tech and worries about job losses
Cybersecurity risks of new
technologies and the attendant risk
averseness
Few end-to-end solutions and old
school procurement systems

16. Daniel Korski
daniel@public.io
@danielkorski
www.public.io
@GovStart