OpenGov has successfully raised $47 million over five funding rounds, achieving a valuation of $750 million. The platform offers cloud-based solutions that streamline budgeting, improve operational performance, and enhance citizen engagement for over 2,000 governments across 48 states.
Keep reading to explore the intricacies of OpenGov's fundraising journey and the investors backing this innovative platform.
What Is OpenGov?
OpenGov, founded in 2012 by Zachary Bookman, is a leader in cloud-based solutions for government. The company provides tools to streamline budgeting, planning, improve operational performance, and enhance citizen engagement.
Headquartered in multiple locations including Chicago, Portland, and London, OpenGov serves over 2,000 governments across 48 states. The platform's comprehensive suite of software products includes asset management, budgeting & planning, financials, permitting & licensing, procurement, reporting & transparency, and tax & revenue management.
With a team of 201-500 employees, OpenGov continues to innovate and expand its offerings, helping local governments operate more efficiently and effectively. The company's mission is to empower public servants with the technology they need to make informed decisions and build public trust.
How Much Funding Has OpenGov Raised?
- Series A
- Amount Raised: $3,000,000
- Date: June 2012
- Lead Investors: Not specified
- Motivation Behind the Round: To develop the initial product and bring it to market.
- Unknown
- Amount Raised: $4,000,000
- Date: July 2013
- Lead Investors: Not specified
- Motivation Behind the Round: To expand the team and enhance the platform's capabilities.
- Series B
- Amount Raised: $15,000,000
- Date: May 2014
- Lead Investors: Andreessen Horowitz
- Motivation Behind the Round: To expand the client base and further develop the product.
- Series C
- Amount Raised: $25,000,000
- Date: October 2015
- Lead Investors: Andreessen Horowitz
- Motivation Behind the Round: To hire more in sales and other areas, continue scaling the company in local governments, and further develop and improve the platform.
- Series D1
- Amount Raised: Undisclosed
- Date: October 2021
- Valuation: $750M
- Motivation Behind the Round: To further scale operations and enhance product offerings.
OpenGov has raised a total of $47 million and is currently valued at $750 million.
Key Investors
- Andreessen Horowitz
- Details: Andreessen Horowitz, also known as A16z, is a prominent venture capital firm co-founded by Marc Andreessen and Ben Horowitz. The firm is known for its investments in technology companies and has a significant influence in Silicon Valley.
- Investment Focus Areas: Technology, software, internet companies.
- Notable Investments: Facebook, Airbnb, Slack.
- Thrive Capital
- Details: Thrive Capital is a venture capital firm founded by Joshua Kushner. The firm focuses on internet and software investments and has a reputation for backing innovative companies.
- Investment Focus Areas: Internet, software, technology.
- Notable Investments: Instagram, Stripe, GitHub.
- Formation8
- Details: Formation8 is a venture capital firm that invests in technology companies. The firm is known for its strategic investments in companies that drive innovation and technological advancement.
- Investment Focus Areas: Technology, innovation-driven companies.
- Notable Investments: Oculus VR, RelateIQ, Illumio.
- Emerson Collective
- Details: Emerson Collective is an organization founded by Laurene Powell Jobs. It focuses on social impact investments in various sectors including education and immigration reform.
- Investment Focus Areas: Education, immigration reform, environment, media, health.
- Notable Investments: AltSchool, Axios, OZY Media.
- 8VC
- Details: 8VC is a venture capital firm that invests in technology and life sciences companies. The firm aims to build and support transformative companies that drive significant societal impact.
- Investment Focus Areas: Technology, life sciences.
- Notable Investments: Palantir, Wish, Guardant Health.
What's Next for OpenGov?
OpenGov stands at the cusp of significant growth opportunities, driven by the increasing demand for transparency and efficiency in government operations. With a potential market of up to 100,000 local governments, the company is well-positioned to expand its customer base and enhance its platform to provide better financial intelligence and transparency tools. The recent addition of Marc Andreessen to the board underscores the strategic importance of scaling operations and leveraging high-profile investments to fuel this growth.
Future fundraising opportunities appear promising, with continued interest from venture capital firms and high-profile investors. As OpenGov scales, it may attract further rounds of financing to support its expansion and development. However, the company will need to navigate challenges such as varying levels of government bureaucracy, ensuring data security, and scaling its platform to meet diverse needs. Despite these hurdles, OpenGov's mission to modernize government financial data systems positions it for a transformative impact on public administration.
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