Vulcan's product, which ensures administrative regulations align with legislative intent, appeals to both parties by framing its value as restoring the constitutional separation of powers. This high-level, philosophical positioning resonates with both sides' fears of executive overreach, creating a surprisingly large and politically diverse market.
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Centrist policies don't have to be boring. By framing sensible, evidence-based ideas as "radical," moderates can capture public imagination and compete with the loud fringes of the political spectrum, making effective governance more appealing and electorally viable.
Instead of aligning with pro-police or pro-accountability factions, Axon focused on a universally accepted goal: reducing deaths involving police. This unifying message allowed the company to secure growth across different political administrations, providing a playbook for navigating and thriving in politically charged markets.
Vulcan's strategy is to first completely own the small, underserved market of "regulatory streamlining" for governments. This focused entry point builds credibility and a strong foothold, creating a wedge to expand into the much larger government consulting market and displace incumbents like Deloitte.
Following the playbook of healthcare software giant Epic Systems, the most durable competitive moat in GovTech is to have your product's specific features and requirements written directly into state or federal law. This tactic makes your company an essential, legally-mandated vendor, effectively locking out competitors.
The most reliable markets are those where customers are legally obligated to buy. By offering services that help companies comply with regulations like the EU AI Act, you tap into a non-discretionary budget. The sales conversation shifts from "if" they will buy to "who" they will buy from.
A new populist coalition is emerging to counter Big Tech's influence, uniting politicians from opposite ends of the spectrum like Senator Ed Markey and Rep. Marjorie Taylor Greene. This alliance successfully defeated an industry-backed provision to block state-level AI regulation, signaling a significant political realignment.
The political battle over AI is not a standard partisan fight. Factions within both Democratic and Republican parties are forming around pro-regulation, pro-acceleration, and job-protection stances, creating complex, cross-aisle coalitions and conflicts.
The economic and societal impact of AI is forcing politicians across the aisle to collaborate. From co-sponsoring legislation on AI-driven job loss to debating state vs. federal regulation, AI is creating common ground for lawmakers who would otherwise rarely work together.
By scanning entire regulatory codes, Vulcan Technology discovered that roughly 5% of state regulations are illegal because they reference statutes that have already been repealed. This finding creates a massive, immediate value proposition for governments: instant risk reduction and cleanup of their legal code.
By first helping government agencies craft regulations, a startup gains deep expertise and credibility. This naturally leads to high-value inbound interest from private sector firms needing help complying with those same regulations, creating a powerful two-sided market flywheel with built-in demand.