VC fundraising for public sector & non-profit software companies
GovTech has emerged as a recognised venture category, with dedicated funds and serious generalist participation. The growth-stage PE community is unusually active here and often sets the valuation envelope. Investors underwrite on procurement velocity, vehicle access - cooperative purchasing, state contracts, federal schedules - and multi-year agency renewal durability.
The active investor set is dedicated GovTech seed and Series A funds, growth-stage software investors that have built government-focused coverage, and the growth-PE community that frequently leads later rounds. Flow has direct relationships across the GovTech specialists and the growth investors who fund this category.
Flow has experience running VC fundraising processes for public sector software companies across federal and state agency platforms, GovTech for municipalities and counties, justice and public safety, education and workforce administration, and non-profit and grants management. Our extensive investor network spans early-stage seed funds, growth-stage investors, and strategic and corporate VC arms.
"Public sector & non-profit software" KPIs VC investors look at
The metrics venture investors benchmark before pricing a round - in diligence, at the IC table, on the term sheet.
ARR
Contracted backlog
Agency / customer count
Renewal rate
Net retention
Implementation backlog
Procurement vehicle reach
Pipeline coverage
Gross margin
Services share
Public sector & non-profit software valuations in May 2026
Public public sector & non-profit software comps trade at 3.8x EV/Revenue. Median revenue multiple across public sector & non-profit software VC rounds was 10x in the last 12 months.
3.8x
Median EV/Revenue as of May 2026 for public public sector & non-profit software companies
72x
Palantir is the highest valued public public sector & non-profit software company based on EV/Revenue (excluding outliers)
10x
Median EV/Revenue across public sector & non-profit software M&A deals in the last 12 months
10x
Median EV/Revenue across public sector & non-profit software VC rounds in the last 12 months
Key recent public sector & non-profit software VC rounds
$54M Series A raised by Valinor Enterprises was the largest public sector & non-profit software VC round completed in the last six months.
See all public sector & non-profit software VC rounds| Logo | HQ | Description | Investors | |||||
|---|---|---|---|---|---|---|---|---|
Jan-26 | Valinor Enterprises |  | Valinor Enterprises is a Maryland-based developer of software and technology solutions for US defense and intelligence community operational needs. | Fifth Down CapitalFounders Fund+6 | $54M | - | Series A | |
Dec-25 | Knogin |  | Knogin is a cybersecurity platform for public safety featuring Hunter for incident reconstruction and Argus for monitoring millions of cameras. The system provides first responders with precise emergency location tracking and situational awareness to enhance response times and community protection. | - | $50M | - | Series A | |
Feb-26 | Vizzia |  | Vizzia provides a crime-solving platform used by European cities for safer communities through data-driven insights on cleanliness and security. | Base10 PartnersHEADLINE+1 | $35M | - | Series B | |
May-26 | GovWell | | GovWell is a cloud-based software provider offering workflow automation for municipal and county governments in the U.S. Its platform streamlines plan review, permitting, licensing, inspections, public works, and code enforcement with mobile apps, real-time collaboration tools, GIS integration, and automated notifications. Deployed in over 200 agencies, GovWell supports digital plan markups, asset management, and reporting compliant with FEMA and ICC standards. Denver-headquartered since 2015, the company focuses on reducing paper processes in building departments. | Andreas HuberBienville Capital+4 | $25M | - | Series A | |
Apr-26 | Pursuit | | Pursuit is a platform that streamlines public sector contracting processes. | AI GrantBasis Set Ventures+6 | $22M | - | Series A | |
Feb-26 | Multitude Insights | | Multitude Insights builds software for law enforcement and public safety teams to manage investigative intelligence on a centralized digital platform. The platform uses dynamic bulletins for documenting incidents, sharing updates, automated analysis for case connections, secure collaboration, and integration with operational tools. | Alumni VenturesCommonweal Ventures+6 | $10M | - | Series A | |
Feb-26 | Modveon | | Modveon develops a verified operating system supporting intelligence services, secure communications, trusted communities, and modern money transfers for nation states. | Coinbase VenturesFirebolt Ventures+2 | $10M | - | Seed | |
Jan-26 | Engaged Citizen | | Engaged Citizen is a Washington, D.C.-based platform fostering civic participation through neighborhood forums and local government alerts. Launched in 2015, it covers US cities with tools for reporting potholes and organizing community events. Users access voting information and petition tools linked to city councils in states like Virginia and Maryland. The service integrates with municipal APIs for real-time updates on public services. | - | $8.8M | - | Undisclosed stage | |
Apr-26 | Stop/Fires | | Stop/Fires is a disaster management platform that maps, monitors, and mitigates wildfires and other disasters. | - | $5.3M | - | Undisclosed stage | |
Dec-25 | Zhengqi Group |  | Zhengqi Group delivers digital solutions for urban governance and industrial operations, integrating big data, AI, and smart infrastructure to foster sustainable city and industry advancements. | - | $4.3M | - | Series A | |
May-26 | CLEATUS | | CLEATUS is an artificial intelligence platform built for government contractors. It supports opportunity discovery, pipeline management, and proposal development within a single interface. The system serves organizations of any size that participate in public-sector contracting. | Las Olas Venture CapitalMotley Fool Ventures+1 | $4.0M | - | Seed | |
Dec-25 | Govstream.ai | | Govstream.ai is a GovTech SaaS platform leveraging AI to automate permitting workflows and urban development processes for municipalities. The system handles permit applications, reviews, approvals, and inspections with machine learning models that reduce processing times by analyzing plans, zoning codes, and historical data. Deployed in cities across North America, Govstream.ai integrates with GIS mapping and public portals for resident submissions. Founded in 2023, the San Francisco-headquartered startup serves planning departments facing backlogs from housing shortages. | 47Th Street PartnersAndreas Huber+2 | $3.6M | - | Seed | |
Dec-25 | Y | Yingguo Technology | | - | - | $3.3M | - | Angel |
Jan-26 | IRIS Intelligence Group | | IRIS Intelligence Group delivers a platform for managing, routing, and resolving intelligence requests tailored for law enforcement. | - | $3.0M | - | Seed | |
May-26 | Avendar |  | Avendar supplies a software platform merging AI analysis with human oversight for key decisions. Police and investigators rely on it to gather, sort, and rank public tips, and governments use it to check subsidy applications against corruption risks via open and closed data. Tools span case management, data visualization, AI model training and monitoring, plus secure access options including cloud or on-premise deployment. | BOMLUMO labs | $2.6M | - | Seed |
VC investors active in public sector & non-profit software
Y Combinator is the most active VC investor across public sector & non-profit software, having invested in 7 startups in the last three years.
See all public sector & non-profit software VCs| Logo | HQ | Description | Key portfolio | |||
|---|---|---|---|---|---|---|
Y Combinator | | Y Combinator is a San Francisco-headquartered startup accelerator that funds and mentors early-stage technology companies across sectors like software, biotechnology, and fintech. Since its inception in 2005, it has propelled alumni including Airbnb, Dropbox, and Stripe through intensive three-month programs featuring Demo Days and investor networks. | Fed10AsideEffiGov+2 | 7 | Pre-seed | |
Andreessen Horowitz | | Andreessen Horowitz is a Menlo Park-headquartered venture capital firm founded in 2009 that targets seed through late-stage investments in software infrastructure, consumer internet, enterprise applications, fintech, cryptocurrency, and biohealthcare. The firm has backed Airbnb, Coinbase, GitHub, Lyft, and Stripe, maintaining offices in San Francisco and Santa Clara. | Kaizen LabsLongeyePrepared+2 | 5 | Series A | |
General Catalyst | | General Catalyst invests in early-stage to growth companies across healthcare, fintech, enterprise software, and consumer sectors from offices in Cambridge, San Francisco, and New York. The firm manages over $25 billion in assets, backing unicorns like Airbnb, Stripe, and Canva. It supports applied AI initiatives through dedicated funds and provides operational expertise via its Resilience platform. | Valinor EnterprisesPolimorphicPrepared+2 | 4 | Series A | |
M13 | | M13 offers strategic counsel and operational support to high-growth startups. Los Angeles-headquartered with offices in New York and San Francisco, the firm founded in 2016 invests through Fund II in emerging technologies reshaping consumer behavior, including AI-driven personalization and digital health solutions. | PolimorphicPreparedChord+2 | 4 | Series A | |
Techstars | | Techstars is a Boulder-headquartered global network founded in 2006 that operates over 50 accelerators annually across 15 countries. It invests $120,000 in exchange for 6 percent equity in 500 startups yearly, spanning AI, sustainability, and healthcare. The firm manages a venture fund deploying capital into alumni companies and runs corporate partnerships with brands like Amazon and Barclays for innovation pilots. Techstars portfolio exceeds 3,500 companies valued over $15 billion collectively. | GranterReportwellInquisio+2 | 4 | Pre-seed | |
Alumni Ventures | | Alumni Ventures is a Manchester, New Hampshire-headquartered venture capital firm managing diversified portfolios for 10,000 accredited investors. Operations run 50 funds targeting seed through Series B stages in AI, biotech, and climate tech. Sourcing draws from 1,000 university alumni networks with co-investments alongside Sequoia and a16z across 1,400 portfolio firms. | Multitude InsightsHyperAdyton PBC+2 | 3 | Series A | |
SistaFund | | SistaFund is a European venture capital fund investing in early-stage startups featuring at least one woman cofounder. | VizziaPAVE SpaceWaiv+1 | 3 | Seed | |
New Enterprise Associates | | New Enterprise Associates is a venture capital firm investing in technology, healthcare, and consumer sectors worldwide. Active since 1977, it supports companies from seed through growth stages with dedicated funds for information technology, enterprise software, cybersecurity, biotechnology, and therapeutics. The firm maintains offices in Menlo Park, Boston, New York, Miami, London, Shanghai, and Bangalore, backing portfolio companies like DocuSign, Uber, and Coursera across North America, Europe, and Asia. | Kaizen LabsSecond Front SystemsFirestorm+2 | 3 | Series A | |
A | Andreas Huber | | Andreas Huber is the Co-Founder and CEO of First Due, a platform streamlining emergency response operations for fire departments. | GovWellGovstream.ai | 2 | Seed |
Serent Capital | | Serent Capital is a San Francisco-headquartered private equity firm targeting lower middle-market tech-enabled service companies across North America. With offices in Austin, the firm partners with founder-led businesses in sectors like software, healthcare services, and business services, providing growth capital and operational support. Serent has completed over 50 investments since 2008, focusing on companies with $5-30 million in revenue. | First DueGovWorxSAIsystems Health+1 | 2 | Series A |
Founders and investors we've worked with
We've supported winning builders across public sector & non-profit software and beyond.
Ziik
We acted as fundraising advisor to Ziik, a Copenhagen-based all-in-one social intranet and internal communication SaaS platform, on its growth funding round.
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Sentryc
We led the capital raising process for Sentryc, a Berlin-based AI-driven brand protection and IP software provider, on its growth round led by Seventure Partners.
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Picus Security
We advised PE firm Turkven on its $24m Series B investment into Picus Security, an Istanbul-based breach and attack simulation (BAS) cybersecurity platform.
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sevDesk
We advised New York-based crossover investor Arena Holdings on its €50m growth investment into sevDesk, a leading German cloud-native accounting platform for SMEs and freelancers.
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Orka
We advised Elysian Fields on its investment into Orka, a Reykjavik-based portfolio of online consumer lending platforms, supporting deal structuring and growth-capital deployment in the Icelandic fintech market.
See moreRecent VC fundraising track record
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