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March 11, 2024 | Tom Ballard

Govtech produces some nice returns

Crunchbase News cites the recent acquisition of OpenGov by Cox Enterprises as the latest example.

Start-ups in and around the Knoxville-Oak Ridge region know this very well, but Joanna Glasner recently wrote about it for Crunchbase News.

In an article with the captivating headline that read “No One Gushes about Govtech, but It Can Produce Some Nice Returns,” she cites the recent announcement that San Francisco-based OpenGov generated one of the biggest exits to date for the govtech sector when it agreed to sell a majority stake to existing shareholder Cox Enterprises at a $1.8 billion valuation.

Glasner writes that developing software and apps for government customers represents a rather large market, noting that Statista projects worldwide spending in the space will top $17.5 billion this year, with continued growth ahead. She adds that “start-up investors have remained quite active in govtech dealmaking, even as they’ve pulled back funding to many other industries.”

Her article can be found here.


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