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The next opportunity: GovTech
If a monkey can do it...
Source: GovTech.com
Participatione-ID, community forums, e-petitions etc.
RegulationAML checks, due diligence software etc.
Deliveryhealthcare, education, law enforcement etc.
Infrastructure
digital controls, sensors, grid etc.
Administrationlicences, software, security, payments, cloud management etc.
Technology that solves public sector problems
How to think about GovTech
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)
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
Technologytrends
Societaltrends
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
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.
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
New opportunities are emerging
Source: Tussell
Key: = £100m
Central London
Spend
Key: = £100m
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% between 2012
Investment in GovTech in the USA ($m)
UK GovTech scene is also gaining traction
Source: PwC
UK GovTech deal values ($m)
Little brother that grew up
Source: Public analysis of publicly available data
Govtech companies are maturing
OpenGov* Accela** Nextdoor*** Palantir*
$100m$400m
$1.1bn
$20bn
Source: *Techcrunch **govtech.com ***WSJ
Strong pipeline of UK and US GovTech companies
Seed
Series A
Series B
But issues to be aware of
Source: *Techcrunch **govtech.com ***WSJ
FINANCIAL TIMESMay 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
