Govtechresearch
Technology team collaborating on digital public services

About

We were asked by Craigie Capital to research investment opportunities for startups in the public sector. After undertaking detailed research, attending conferences, and liaison with many individuals and change-makers in the space we produced the report “GovTech: An Emerging Sector Revolutionising Public Services” - the most comprehensive investigation into the sector to date.

Working With Our Team

Founders and public servants meeting to discuss a project

Our work on public sector investment is shaped by the conversations we have with founders, funders, and public servants. We value practical knowledge over headline claims, and we aim to present findings that can be checked against real procurement activity and real service results.

If you would like to discuss the research, read about the wider team on the Our Team page, or see what others have said in the Testimonials section before getting in touch.

Investible Business Models and Exit Routes

A central question for investors is whether a public sector startup can build a business that scales beyond a single contract. The report explores models based on platform licences, shared services across councils and departments, and products that can be adapted for several national markets once they prove their value in the UK.

Exit opportunities are just as important. Acquisition by larger technology suppliers, strategic partnerships with service providers, and eventual listing are all discussed in the report. Each route depends on the startup showing that its solution improves outcomes and can be maintained over time.

Team reviewing investment models and business plans on a whiteboard

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The nine most terrifying words in the English language are, 'I'm from the Government and I'm here to help.' - President Ronald Reagan '86

We discovered a new startup investment market segment moving from emergence into implementation with the UK being a focal point for digital transformation of Government. The report summarises Government strategy, outlines the development of viable investible business models, explores exit opportunities for investors as well as growth strategies for startups.

Every investment in public services carries a responsibility to the people who use them, and we remain committed to clear and honest research on the sector. Contact us

Questions About the Report

Readers often ask what the report covers and who it is for. It is written for investors who are considering public sector opportunities, for founders who want to understand the buying process, and for policy staff who want to see how other markets respond to government demand. The answers below summarise the most common points.

If your question is not listed, you can reach out through the Contact us page, and we will point you to the relevant section of the research.

Who is the report for?

The report is designed for investors, founders, and public sector professionals who want a structured view of the GovTech market in the UK.

Does the report cover exit opportunities?

Yes. It explores the exit routes available to investors and the growth strategies that startups can use to make those exits possible.

How the Research Was Carried Out

Researchers reviewing notes and data from conference interviews

The work combined desk research with direct conversations. We attended conferences where public sector leaders and founders presented their current priorities, and we spoke with change-makers who are trying to modernise services from inside government as well as from outside it. Each conversation helped us test the claims made in published strategy against what people were actually building and buying.

Our readers can follow the same approach in their own due diligence. Begin with the official strategy, then compare it with the procurement routes and pilot programmes that show where money is really moving. For more about the people behind this work, visit the Bio page.

Why Public Sector Startups Matter

Government technology, often called GovTech, describes the startups and products that help public bodies deliver services more efficiently and more openly. The sector has grown from a set of small pilot projects into a area where investors are looking for repeatable business models and measurable public benefit.

Our research followed this shift closely. We looked at how departments buy technology, how startups earn revenue from public contracts, and where the barriers to entry remain high. The picture that emerged is of a market that rewards patience, clear evidence of results, and a real understanding of how government works.

Startup team reviewing public sector technology plans together