Welcome to e.Republic Labs

Fellow innovators,

Thank you for visiting e.Republic Labs, a new ecosystem to education and accelerate innovation within the public sector. Our goal is to help facilitate a more rapid way to test innovative solutions from private sector, non-profit and independent organizations within the public sector.  We will accomplish this by conducting research on emerging technologies and trends, as well as establishing a more structured and open mechanism for all organizations involved in government technology to collectively solve challenges.

I’m excited to be apart of the e.Republic team and look forward to working with each and every one of you.

Dustin

 

Dustin Haisler, Chief Innovation Officer
e.Republic | erepublic.com
dhaisler (at) erepublic.com

 

Unpacking The GovTech Market - A VC's Perspective

by Frederick Groce, Storm Ventures

The United States is on the cusp of a much-needed digital transformation. Current legacy systems, paper-based processes, and on-premise infrastructures have become glaring areas of embarrassment and frustration for governments, Civil Servants and citizens alike. And while there are exciting examples of innovation, such as the GSA’s 18F, the majority of State and Local governments have been left waiting for their opportunity to embrace the future. That time is now.

Today, there’s an explosion of startup activity happening in and around the government technology (GovTech) space, and unprecedented interest from Civil Servants at all levels of government. Even investors, like myself, are getting excited about the “$400 Billion market hiding in plain sight”-Ron Bouganim, Managing Partner at GovTech Fund. But how do you as a Civil Servant evaluate potentially transformational startups? How do you as a GovTech company set yourself up for success within government and fundraising?

You have to think like a venture capitalist.

If you’re a GovTech startup, you need to pay attention to the following—doing so will help you not only close accounts, but help you when it’s time to raise venture capital.
• Understand the government buyer. You need to understand how governments make buying decision, how the budget cycle works along with the potential impact that cycle will have on your business. This will help you be empathetic to the inherent risks your customer—government—is taking by working you.
• State and local first. While federal contracts have the allure of high ACV’s, they will distract the product roadmap. Going after State and local will allow you to close more accounts at a faster rate which will allow you to quickly iterate on the product by getting feedback. The long-term impact by starting at the State and local level is increased business acceleration—the key to becoming venture backed.
• Efficient Growth is key. Be mindful of how much cash you’re burning to grow. This is extremely important in the GovTech space because sales cycles are typically longer.
• SaaS is necessary, but not sufficient. There are a lot of low hanging SaaS opportunities in government because Civil Servants have been starved for innovation. But be wary of these “get rich quick” opportunities. Companies that will succeed are those that have a long-term solution that builds greater insights over time by leveraging the unique data that governments aggregate.

If you’re a Civil Servant, use the following to help you evaluate the GovTech startups you’re thinking of working with.

• Startups are at the forefront of Innovation. As an early customer, you’re going to get more than you’re paying for, but it also likely means the product will likely change a lot during the early days. You need to understand that while these changes might be annoying, they are being done with your interest at heart, so be patient and flexible.
• Evaluate a startup on the “time to value.” A smart GovTech startup understands that you as a Civil Servant are taking a risk by choosing to work with them. This means they need to provide you with results quickly. SaaS is about instant gratification, not long deployment cycles.
• Land and expand. Create organizational pathways to quickly adopt and trial new technologies. As you find the right technology fit, expand the account for your organization’s needs.
• Understand your role as a “Champion.” As an early customer of a GovTech startup, they’re bound to be extremely loyal and attentive to your organization’s needs, but keep in mind that this “perk” also comes with a responsibility. It is your job to advocate for the startup. This might mean answering calls from investors, potential customers, or providing quotes for the website.

Regardless of whether you’re a GovTech founder or a Civil Servant looking to work with a startup, you should be talking with investors. Venture Capital is key to ensuring the digital transformation of government becomes long-term sustainable and successful reality. If we want to see an increased activity in the number of GovTech startups, then the lines of communication need to be active and open. Civil servants need to be talking to investors about their frustrations with the status quo and what they want from their technology. Because at the end of the day, venture investors are only as good as the information we have available and both GovTech founders and Civil Servants are key to this.

Frederick Groce is an analyst at Storm Ventures in Menlo Park, California.

The Time is Right for Civic Innovation

The following blogpost is from Will Semmes,  who brilliantly captures the energy that is happening within the government technology market and the opportunity for massive changes in one of the most resistant structures of change – our government. 

There’s a revolution happening right now, and California state government needs it badly. That revolution is the civic innovation revolution, which is the process of using new technologies and design methods to bring efficiency to government and power to citizens. The civic innovation revolution was born from massive productivity gains in the private sector leveraged by a burgeoning civic technology industry that is already bringing those gains to some governments, mostly at the city level.

The success of this revolution in California, and in other states and the federal government, will depend upon a new generation of people who are trained, willing and able to bring change to even the most sclerotic of bureaucracies. To prepare this new generation, we created a first-of-its-kind Masters in Business Administration that specializes in teaching students what they need to know to lead the civic innovation revolution both inside and outside government. The new MBA in Civic Innovation at California College of the Arts in San Francisco will teach future leaders how to combine design, innovation, leadership and technology to bring our government into the 21st Century.

We expect many of our graduates to answer Accela CEO Maury Blackman’s recent, valiant call to serve on strike forces of the US Digital Service (USDS) and a future California Digital Service – which, I agree, should be established now. The USDS was created out of the ashes of the HealthCare.gov debacle to match private sector technology and productivity with government agencies in need of change. Maury called on civic-minded technologists to lend their expertise to the people already in government who are trying to change the status quo and create the conditions necessary for the civic innovation revolution to take root.

Unfortunately there’s a lot blocking this revolution inside much of our government, especially in California state agencies. Fundamentally, some do not seem willing to change — hierarchical “siloed” bureaucracies often just try to survive as management fads and political interests come and go. Entire organization charts are arranged to accommodate individuals and civil service requirements, not to perform functions. The inertia against change is compounded by archaic civil service rules and union protection, complex procurement regulations that put the fabled Gordian knot to shame, low rates of data literacy among government workers and politicians, and few programming and app development skills in most agencies. Recently, the California Bureau of State Audits reporteda series of large IT project failures — costing hundreds of millions of taxpayer dollars — which indicate that the problems are serious and systemic.

How is it possible that the NSA can track my every move and listen to every phone conversation I have, yet we still have to wait in line at the DMV, and government agencies just 100 miles from Silicon Valley can’t get important IT projects done? And then, on March 18, California was graded an F for financial transparency. So, as taxpayers, we can’t begin to make sense of it from the outside. And the California Legislature gets similar grades for its own transparency.

Thankfully, there are people in California state government now who are working hard to change the inertia and open data to the public so the revolution can take place there and scale. What we realized is that they need help, and it is our duty as citizens to respond.

When governments embrace civic innovation, it can change everything — costs go down, speed goes up, quality improves and new information is uncovered every day.  With the revolution in place, public services can respond to evolving needs in flexible and predictive ways — everyone wins.

I was excited by Maury’s rallying cry and was reminded of my own call to join the civic innovation revolution when I was appointed by Gov. Arnold Schwarzenegger to be co-Director of the California Performance Review in late 2003.

The California Performance Review (CPR) was the Governor’s sweeping assessment of California state government productivity and a bold plan for reform. To implement CPR, we brought in 250 senior civil servants from around California state government, selected from more than 3,000 applicants from the executive, legislative, and judicial branches. At CPR, we knew the political risks we were taking, so we worked non-stop for seven months and published a huge document with hundreds of comprehensive recommendations for reform and bold ideas to re-arrange the way government was organized so that form would follow function. Yet because there was, and remains, so much stacked up against significant change, CPR was DOA.  While some of the recommendations were implemented over time, the real excitement for reform, the kind that comes with societal changes and major events, had left Sacramento. There was something missing in our recommendations and at the time we didn’t know what it was.

After CPR, I served in other departments where I saw hundreds of experienced civil servants working tirelessly against a lot of odds just to do their jobs. This frustrated me to no end — it seemed like government was set up to make it difficult to do the simplest things. It was only after I left state government in 2009 that I was able to see it from the outside and realize what was missing — civic technology and the energy and possibilities generated by the civic innovation revolution.

It’s hard to believe that eleven years ago, when we published the CPR report, the technology we now take for granted either did not exist or we in state government were unaware of it at the time. The first iPhone wasn’t launched until 2007, AirBNB didn’t start until 2008, and Code for America wasn’t established until 2009. Ultimately, the technology we needed to make CPR a reality just wasn’t available to us. Back then we saw the possibilities with Adobe forms and large Enterprise Resource Planning systems but, most of the time, state government was not able to translate those possibilities into regular practice. The huge IT failures we are seeing in state government today are solutions that were designed and budgeted five or more years ago. For perspective, five years ago, Uber was barely a year old, and it was called UberCab.

This is where timing comes in. The civic innovation revolution is happening now because of rapid technology development and a newfound willingness to look at old problems in new and creative ways. This timing is precisely why it is imperative that California state government establish its own digital service, and it’s precisely why the timing of CCA’s MBA in Civic Innovation is so important.

I know there is a generation of people who desperately want to make a difference but don’t know how. When I got out of college I wanted to make a difference so I became an infantry officer in the U.S. Marine Corps. Through my military service, I felt like I earned my citizenship. Yet military service is not for everyone. I believe low voter turnout is directly related to the fact that we don’t see ourselves as participants in our own governance — and we just don’t know how to get involved. But that is changing!  The timing is finally right to bring it all together — design, innovation, leadership and technology. The civic innovation revolution is making it all possible. With open data from government and civic technology, people are building the tools to participate and improve our democracy.

In Officer Candidate School, I wondered which of my classmates would go on to make a difference. With CCA’s MBA in Civic Innovation, I wonder which one of our graduates will be a future director of a California Digital Service? Which one of our graduates will go on to run for office and serve the civic innovation revolution from the Oval Office or Congress or City Hall? I can’t wait to find out.

Originally posted on GovTech.com

State of GovTech Market 2016 Year In Review

In October 2016, we joined forces with Crunchbase, Nasdaq Entrepreneurial Center and the San Francisco Mayor’s Office of Civic Innovation to host a first-of-its-type event on the state of the gov tech market. There has been considerable activity in the market since that event and we are excited to release final year-end numbers for the gov tech market in 2016.

GovTech-as-a-Market

govtech-logo

Yesterday the government technology market was abuzz regarding the announcement of the Govtech Fund. The GovTech Fund is a 23 million dollar venture capital fund established to provide investment funding for startups within the government technology market.  Raising capital for companies that build solutions for government is no easy task, but this announcement shows that the market is in the midst of a major transition. Over the past year, there are been an increasing number of notable investments in government technology companies, starting with a 15 million dollar investment by Andreessen Horowitz in OpenGov. As the market continues to expand, the Govtech Fund’s specialized-focus will lend it to being an invaluable resource for startups that set their sites on building technology to solve problems for government.

Read more about our coverage of the Govtech Fund here.

GovTech Market Event

On October 27th, we will be hosting the first State of GovTech market conversation in collaboration with the City and County of San Francisco, Crunchbase and the Nasdaq Entrepreneurial Center. For more information or to request an invite, please contact Dustin Haisler at dhaisler@erepublic.com.

state-of-govtech-savethedate_pdf

e.Republic Ventures Chooses ArchiveSocial In Newly Launched Gov-Tech Accelerator Program

SACRAMENTO, Calif.  July 18, 2014   ArchiveSocial—a civic-tech startup that provides automated archiving for social media content—is the first company to partner with e.RepublicVentures.com, a new market accelerator program designed to bring innovative technology to government.

The arrangement provides ArchiveSocial with venture capital and other resources designed to increase the firm’s public-sector market share.

“We’re solving a problem that affects virtually every agency using social media, but most agencies don’t know that we exist,” said ArchiveSocial founder Anil Chawla. “Working with e.Republic is a game-changer. The partnership gives us access to the market and resources that we simply would not have on our own.”

ArchiveSocial — recently named to Gartner’s 2014 list of “Cool Vendors in Government” — offers a hosted solution that preserves social media content in its original format, time-stamps the data and makes it easily retrievable for compliance with state disclosure laws and the Freedom of Information Act, legal e-discovery and other needs.

The firm is a former Code for America Accelerator company, and it already has a growing list of government customers, including the state of North Carolina; the city of Austin, Texas; and Palm Beach County, Fla.

Growing social media use in government is triggering widespread records-retention challenges for public agencies. Social media content is subject to public records laws across the United States, creating the need for a cost-effective way to store and retrieve this information.

“For the past few years, agencies have been struggling to find a practical solution for this important transparency requirement. We have exactly the right technology at a price-point that makes sense for government,” said Chawla.

The newly launched e.Republic Ventures program invests in early stage companies to speed their entry into the public-sector market. Besides providing venture capital, the program links companies to incubation activities and to the broader resources of e.Republic Inc., parent company of Government Technology, Governing and other government-focused media and research properties.

“We looked at dozens of early stage companies in the civic technology space – and ArchiveSocial is unique,” said e.Republic co-founder and CEO, Dennis McKenna. “It’s a solid company with a simple, disruptive solution for governments that is immediately scalable.”

McKenna said the Ventures program furthers e.Republic’s longstanding mission of transforming government and education through smart, innovative technology.

“Too often, new companies with great solutions to public-sector problems don’t have the resources, know-how and reach to truly scale,” McKenna said. “We’re launching e.Republic Ventures to help companies with exciting public-sector solutions overcome these hurdles and win in the government market.”

 

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About e.Republic Ventures: 

e.Republic Ventures provides mentorship and capital for a select number of early stage companies to accelerate their entry into the public sector market.  It links the incubation efforts of e.Republic Labs by proving and scaling emerging government and civic technologies with the combined resources of e.Republic, parent company of Government TechnologyGoverning and other media and research properties focused on the state and local government market.

Contact:

Patty Cota

Director of Corporate Communications

916-932-1300

pcota@erepublic.com

 

About ArchiveSocial:

ArchiveSocial enables public entities to safely and effectively utilize social networks such as Facebook, Twitter, YouTube, Instagram, and LinkedIn. ArchiveSocial is the industry’s first archiving technology providing 100% authentic capture of social media for compliance with state and federal records laws such as FOIA. It provides a legal safety net, and eliminates the time and effort required to respond to public records requests. ArchiveSocial is completely hosted and requires zero IT deployment. It serves as a cost effective offering for any sized public entity, and provides the industry’s easiest and most comprehensive solution for managing records of social media. ArchiveSocial was selected for the prestigious Code for America Accelerator in 2013, and has been named a 2014 Cool Vendor in Government by leading analyst firm Gartner. ArchiveSocial is based in Durham, North Carolina.

Contact:

Alix Bowman

Marketing Manager

alix.bowman@archivesocial.com

(888) 558-6032 ext. 106

Defining the GovTech Market

Last week, I had the privilege of attending the Smart City Startups Summit in Miami, Florida. By bringing together startups, government, investors and philanthropists, it was an incredible demonstration of the health and maturity of the government technology (GovTech) market. During the event, we released the first round of research out of e.Republic Labs regarding the state of the GovTech market as it pertains to startups. Up to this point, there have been numerous definitions and market sizing figures that have been used by different groups within the space – but there was no clear definition to reconcile the differences. Months back, we began a journey to develop a framework to reconcile the differences and describe the GovTech market in its entirety.

This is what we discovered:

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: (1) administration, (2) service delivery, (3) civic tech and (4) smart infrastructure.


 


This early research is designed to fill a knowledge gap with the market as well as initiate a larger  conversation regarding how we analyze and describe market activities. We encourage you to reach out with feedback and questions so we can collectively accelerate the pace of knowledge transfer and change within this exciting space. Also, if you’re a startup in this emerging market, we want to hear from you- jump to this form so we can include you in future research.

Announcing the GovTech 100 for 2017

Govtech100_2Header1
Government Technology magazine has released its second annual GovTech 100, a compendium of 100 companies focused on and making a difference in — and selling to — state and local governments. GovTech has earned recognition as its own market segment through the work of a growing number of companies — and the investors that back them — in helping governments do their work more effectively in serving their communities. These companies are active in one or more market segments: administrative, service delivery, intelligent infrastructure, and civic tech focus areas.

Check out the 2017 GovTech 100 at GovTech.com. and make sure to read the January editorial feature about this growing market segment.

3 Questions to Guide the Future of Civic Technology

By: Abhi Nemani, Chief Data Officer of Los Angeles

Gov 2.0 is a long-term vision, and we’re just getting started. As technology develops and expands, we must constantly be asking ourselves, “What’s next?”

Flickr-CfA-Textizen

Source: Flickr CC Code For America

Five years into the Gov 2.0 movement, terms like “open data,” “open government” and “civic innovation” are quickly becoming day-to-day realities, both inside the public sector and out. Hundreds of jurisdictions at all levels of government have open data portals; dozens have Chief Innovation or Data Officers, or other innovation shops; and an ecosystem of for-profit vendors has emerged as living, breathing (and growing) examples of how technology can radically change the way our governments work.

So what does that mean for those of us in the field — either from the start or new entrants? Does that mean we can pack up and head home? Are those rightfully celebrated victories sufficient to prove that we now have governments 2.0? I think not; nor do I think most people in the space would. The reality is that Gov 2.0 is a long-term vision, and we’re just getting started. As technology develops and expands, we must be constantly be asking ourselves, “What’s next?”

Looking at what’s ahead, the reality I see is exciting, with more energy than ever. But it also comes with a certain responsibility: How do we ensure that our civic innovations are having the impact they should? Now with more time, resources and attention invested in this space, it’s critical for us to answer these questions:

HOW DO WE GET SUCCESSFUL INNOVATIONS TO SCALE?

Whether it be at weekend hackathons or weekly meetups, dozens of civic apps are created every week. These tools are as diverse as the challenges we face in the public sector: Some focus on a specific issue such as disaster readiness app ATX Floods, or the blight monitoring system Civic Insight, and others span the gamut, such as Textizen, the broadly reusable citizen input platform.

These tools matter, each in their own way. All of these tools, however, face a common challenge: getting them in the hands of the people who want and need them. User adoption — to use a consumer industry phrase — remains a challenge for many in the civic technology ecosystem, a challenge that strikes at the vitally important issue of impact. The question we must ask is, “Can these tools, no matter how well intentioned or designed, have an impact if they aren’t being used?”

Fortunately, creative approaches are helping solve this problem. App builders are beginning to invest in traditional marketing tactics, such as advertising or on-the-ground outreach. MindMixer and Crisis Text Line have tested physical ads that go to where citizens are, leading to significant user traction. Since cities control vast swaths of public advertising like bus stops and billboards, opportunities abound for greater usage of these largely untapped assets.

A less common tactic, but potentially even more powerful, is the conversion of consumer apps into civic tools. Take Waze, for example, the consumer traffic app acquired by Google. While possibly apocryphal, it was reported that Waze has received more pothole submissions than all the 311 apps combined. The advantage these consumer platforms have is that they are already installed on millions of devices across the country; if we can push them to play a broader civic role, we open up the doors to an unprecedented scale for impact.

Finally, imagine a combination of both of these tactics: integrations between the larger platform players in the civic space — MindMixer with its 700+ clients, GovDelivery with its 70 million users, etc, — and the emerging new apps that help them get to scale.

HOW CAN WE CREATE NETWORKS WITHIN AND ACROSS GOVERNMENTS?

I recently spent a few days with the folks from New Urban Mechanics from Boston and Philadelphia. The Mayor’s Office of New Urban Mechanics (MONUM) was a Boston city government department founded about six years ago to drive a culture of experimentation within the city. Led by Nigel Jacob and Chris Osgood, MONUM served as an “urban incubator,” supporting innovative projects across the city, running them as pilots, and learning what works and what doesn’t. In and of itself, their work was laudable, changing the way the schools interact with parents, city hall with citizens, and how potholes are reported. But more interesting was the growth of their model itself. It wasn’t just their apps that spread, but their department. They shared policies, not just code.

After learning about Boston’s success, the city of Philadelphia launched its own Mayor’s Office of New Urban Mechanics in 2012, and just recently Utah Valley University spun up its own instance. How were they able to do it? By working together. I asked the Philadelphia MONUM team how they worked with Boston, and it was simple enough: At the start, they shared documents and lessons to build support, and moved to sharing technologies and successes for quick-wins. Since then, they’ve set up recurring conference calls to stay connected on ongoing projects. Now they share back and forth. For example, Textizen, an app built in Philadelphia, has now been deployed in Boston, and both are collaborating on procurement reform.

This model of networked governance holds promise for the future. The necessary technology here is simple enough: time for city officials to connect, platforms to share documents and best practices, and the occasional conference call. And the upside is staggering: innovations being spread more quickly to every city.

HOW CAN WE CREATE BETTER ‘MACHINES FOR LEARNING’?

What these evolutions have in common is a need to partner and work together. For scale, shared resources and reach is key. For reuse, governmental collaboration is essential. What this means is that we must begin to erect better systems for collaboration in the civic technology community. What makes this community special — and unlike other industries, such as traditional enterprise or consumer apps — is that we all share a common, additional bottom line: civic impact. That means that we’re all taking the same hill. When it comes to technology, cities do not compete. This isn’t zero sum. Even in competitive arenas, like civic startups, there’s little reason to spurn partnerships or cooperative dialogue since more successful companies mean a stronger field and ultimately more attention from the media, investors and governments.

To do this well, however, the field needs to commit to developing better systems for collaboration. Too often, these critical conversations happen as one-offs at conferences, not in any structured or systematized fashion. This, I think, undermines collective impact. In his famed book The Lean Startup, Eric Reis talks about the notion of building a startup as a “machine for learning.” What he means by this is continually developing hypotheses your company seeks to test, and instrumenting the technology in a way that ensures the results from those tests are always pushed back into the system. That’s a machine that learns and grows smarter and stronger over time.

The question for us is how to architect similar systems for the civic technology ecosystem, our own machines for learning how to make innovation spread and scale. Why? In part because it’s in our own self-interest to make each of our initiatives smarter and stronger. But more importantly because in our democracy it’s our mandate to make the whole greater than the sum of its parts, to always remember: out of many, one.

 Originally posted on GovTech.com.

Abhi Nemani is the Chief Data Officer of Los Angeles. Previously, he helped launch, build and run Code for America, where he led product strategy and growth. Prior to CfA, he worked for the Rose Institute of State and Local Government, Google and the Center for American Progress, and currently he is helping a number of civic technology organizations grow, including the OpenGov Foundation and Significance Labs. Abhi’s work has been featured in the New York Times, Fast Company, and at conferences around the world.

2017 GovTech Investor Landscape

As of 2017, there are over 400 unique investors that have supported GovTech companies through seed funds, series funding, and numerous other mechanisms. Investors continue to play a critical part in the GovTech ecosystem by helping support early and late-stage company growth and expansion. As the GovTech market continues to gain momentum, we have seen the emergence of more focused funds, like the GovTech Fund, designed to support and catalyze new activity only in this space. You can view the 2017 GovTech investor landscape below:

Investors

You can explore the full list of GovTech investors by clicking here.

2017 Distribution of GovTech Companies in the United States

In January 2017, we compiled data from Crunchbase and e.Republic to map the distribution of gov tech companies headquartered in the United States. The snapshot of this analysis (posted below) will allow us to continue to track and benchmark the spread of gov tech companies throughout the United States, as well as identify new regional clusters of market activity.

GovTechHeatMap

To explore the industry in more detail, make sure you check out the GovTech 100 and GovTech on Crunchbase.