Government procurement is slow because every scandal or instance of fraud leads to new rules and oversight. The public demands this accountability, which in turn creates the very bureaucracy that citizens and vendors complain about.
While most local government data is legally public, its accessibility is hampered by poor quality. Data is often trapped in outdated systems and is full of cumulative human errors, making it useless without extensive cleaning.
Despite the high cost of distribution, OpenGov's success relied on a high-touch, in-person sales strategy. The team would show up with donuts, meet everyone in town, and build deep relationships, even for small initial contracts.
OpenGov's CEO argues against the "never compromise" mantra. Building a business over a decade is a long series of painful compromises on talent, pricing, and sales. You must make tactical concessions to survive each stage and earn the right to advance.
After nearly failing, OpenGov adopted a frugal culture and discovered it grew faster. Less spending reduces system noise and inefficiency. A leaner, more focused sales team, for instance, can become more motivated and effective, leading to better results.
OpenGov's CEO advises against the conventional wisdom of hiring salespeople with deep government experience. Instead, his company seeks hungry, courageous, and disciplined individuals and trains them internally on domain specifics, finding this approach more effective.
Zac Bookman argues that the high cost of sales, slower growth cycles, and customer preference for product suites make GovTech a better fit for private equity's long-term, operational focus than for venture capital's high-growth model.