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Govtech Ventures is a venture capital firm founded in 2024 by Rachel Stern, based in California, United States. The firm focuses on backing early-stage companies that are modernizing state and local government through technology. Govtech Ventures operates with a fund size of $15 million, targeting investments in the pre-seed and seed stages.
Since its inception, Govtech Ventures has aimed to support founders addressing critical challenges within the public sector. The firm has a unique position as one of the few dedicated solo-GP funds in the govtech space, allowing for a focused approach to investment and support. Rachel Stern's extensive experience in government relations and venture investing enhances the firm's ability to guide portfolio companies through complex procurement processes.
Govtech Ventures has been actively building its portfolio, which includes notable investments in companies like PayIt, Ignatius, and Polco. The firm’s commitment to transforming government technology is evident in its strategic guidance and expertise provided to these companies.
Govtech Ventures invests in early-stage government technology (govtech) companies that tackle various challenges within the public sector. Their investment strategy emphasizes solutions that replace outdated systems, integrate siloed data, and enhance citizen engagement. The firm primarily targets investments in the pre-seed, seed, and seed-plus stages within the United States.
The investment thesis of Govtech Ventures includes three primary areas: tools that digitize workflows and enhance the usability of government data, platforms that facilitate cross-agency collaboration and real-time data sharing, and citizen-facing services that build trust between communities and government. The firm seeks companies with a defined total addressable market (TAM), high gross margins of approximately 80%, and net revenue retention exceeding 100%.
Govtech Ventures has invested in several notable companies within the government technology sector:
These portfolio companies exemplify the firm's commitment to supporting innovative solutions that address critical challenges in government operations and citizen engagement.
Rachel Stern - Founding & Managing Partner
Rachel Stern has nearly 15 years of experience in lobbying, operations, and venture investing. She is an early investor in PayIt and Ignatius and previously served as the Chief Strategy Officer at Streamline. Rachel has a strong background in government relations, having helped pass over $3 billion in legislation across 46 states. Her experience includes supporting growth at companies like Lyft, Zoom, Square, and Hims & Hers. Rachel's dual expertise in government and venture capital positions Govtech Ventures uniquely within the industry.
To pitch Govtech Ventures, founders should visit their website at govtechventures.com. The firm prefers direct outreach through their contact page. When preparing a pitch deck, it is important to include a clear value proposition, market analysis, and details on how the solution addresses specific government challenges. Founders should expect a response within a few weeks, and warm introductions are encouraged but not mandatory.
In December 2024, Govtech Ventures achieved its first close on its inaugural fund, targeting $15 million. The firm is actively building its portfolio, with notable investments in companies like PayIt, Ignatius, and Polco. As of April 2025, the firm anticipates a second close for its fund, further solidifying its commitment to supporting early-stage government technology companies.
What are Govtech Ventures' investment criteria?
Govtech Ventures focuses on early-stage companies in the government technology sector, particularly those addressing outdated systems, siloed data, and limited citizen engagement. They prefer companies with a defined total addressable market, high gross margins, and strong net revenue retention.
How can I pitch to Govtech Ventures?
Founders interested in pitching to Govtech Ventures can visit their website at govtechventures.com for more information on the application process. The firm encourages direct outreach through their contact page.
What makes Govtech Ventures different from other VC firms?
Govtech Ventures is one of the few dedicated solo-GP funds focused on the govtech sector. Rachel Stern's dual background in government relations and venture investing provides a unique advantage in helping portfolio companies navigate procurement processes.
What is the geographic focus of Govtech Ventures?
The firm primarily invests in companies based in the United States, specifically targeting state and local government technology solutions.
What is the typical check size for investments?
Govtech Ventures typically invests in the pre-seed and seed stages, with check sizes varying based on the specific needs of the portfolio companies and the stage of investment.
What kind of support do portfolio companies receive?
Portfolio companies benefit from strategic guidance, operational support, and access to Rachel Stern's extensive network within the government and venture capital sectors, enhancing their ability to scale effectively.
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