The United States federal government is in dire need of better technology to enhance its operations and services. However, implementing new systems is a daunting task that requires significant resources, expertise, and time. The internal process for building new tech moves at a slow pace, ensuring that the government remains behind the commercial sector.
Startups as a Lifeline of Innovation
While startups could serve as a lifeline of innovation for the government, the process to get a contract is thorny and long. Many companies struggle to navigate the complex bureaucratic landscape and secure funding to help them achieve their goals.
Dcode: A Woman-Led Organization with a Mission
For the past six years, Dcode has been helping speed up the government contract process for over 100 companies that are already generating commercial revenue. These companies have secured more than $200 million in federal contracts. Now, the women-led organization is raising a fund to invest in some of these companies as well.
The Founders’ Journey: A Common Gripe and a Shared Vision
In 2016, Meagan Metzger and Meg Vorland were connected by mutual friends and met for drinks to discuss their common gripe – the difficulty of getting good outside tech into the government. Both had experience working with the government from opposite sides: Metzger had worked at a government-facing IT consulting firm, while Vorland was alongside the COO at the Small Business Administration.
"As we talked about the pitfalls and where we had both banged our heads against the wall from both the inside and outside, we realized we could add a lot of value getting together to solve these big challenges for the tech sector and government," Vorland said in an interview with TechCrunch. "It was literally love at first sight in a way. We both just had the intensity, spirit, and background that we thought would be very complimentary."
Dcode’s Unconventional Approach
Dcode is not a typical accelerator program. It is stage-agnostic, focusing on a company’s potential for the government rather than its size. The organization does not take equity stakes or offer funding but instead provides guidance and support to help companies navigate the complex government contracting process.
The Launch of Dcode Capital
In response to the growing demand for investment in government technology, Dcode launched its venture capital arm, Dcode Capital, in 2020. The fund aims to invest in startups that are building innovative solutions for the government and other industries.
A Growing Market: Government Technology Investing
The market for government technology investing is growing rapidly, with many investors recognizing the potential for significant returns on investment. According to a report by CB Insights, the federal government spent over $80 billion on IT in 2020 alone.
Key Players in the Government Technology Investing Space
Some notable players in the government technology investing space include:
- Dcode Capital: A venture capital firm that focuses on investing in startups building innovative solutions for the government and other industries.
- Accel Partners: A global venture capital firm with a significant presence in the government technology sector.
- The Department of Defense: One of the largest investors in government technology, with a focus on developing and acquiring cutting-edge technologies.
Conclusion
The U.S. federal government’s tech needs are vast and complex, requiring innovative solutions that can be implemented at scale. Startups and venture capital firms like Dcode Capital are well-positioned to address these challenges and drive growth in the government technology sector.
Related Topics:
- Accel Partners
- Department of Defense
- Finance
- Government
- Healthcare
- Machine Learning
- Private Equity
- Security
- Startup Company
- Startups
- Tamr
- United States
- Venture Capital
Recommended Reading:
- "The Future of Government Technology Investing" by CB Insights
- "Government Technology Trends to Watch in 2023" by GovTech
- "How Venture Capitalists are Driving Innovation in Government Technology" by TechCrunch
