Subject: Re: Govtech Fund
From: "Rob Walker" <[email-masked]>
To: "Neil Callahan" <[email-masked]>
Cc: "William Lee" <[email-masked]>, "John DeLoche" <[email-masked]>, "Devon Archer" <[email-masked]>, "Hunter Biden" <[email-masked]>, "Eric Schwerin" <[email-masked]>
Date: Mon, 10 Mar 2014 13:30:43 -0400

they did not.  they think they need sales people and not lobbyists.
 they're wrong, but we told them what they needed.

On Mon, Mar 10, 2014 at 12:31 PM, Neil Callahan (Rosemont Seneca) <
[email-masked]> wrote:

> Rob - did Captricity reach an agreement with CGA?
>
>
>
> Neil Callahan
>
> 152 West 57th, 47th Floor
>
> New York, NY 10019
>
> 212-933-9965 (o)
>
> 917-945-9516 (m)
>
> 866-749-8879 (f)
>
> www.rstp.com
>
>
>
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>
>
> *From:* William Lee [mailto:[email-masked]]
> *Sent:* Monday, March 10, 2014 11:54 AM
> *To:* Neil Callahan
> *Cc:* John DeLoche; Devon Archer; Rob Walker
> *Subject:* Re: Govtech Fund
>
>
>
> Interesting, it lists our friend, Captricity.  Founders Fund invested in
> their Seed round.
>
> Also, Govtech lists Tim O'Reilly as its investment advisor.  Tim is one of
> the new investors in the series seed round for Metabiota.  Small world.
>
> -Will
>
>
>
>
>
> On Mar 10, 2014, at 8:43 AM, Neil Callahan (Rosemont Seneca) <
> [email-masked]> wrote:
>
>
>
> GovTech Fund presentation.
>
>
>
>
>
> Neil Callahan
>
> 152 West 57th, 47th Floor
>
> New York, NY 10019
>
> 212-933-9965 (o)
>
> 917-945-9516 (m)
>
> 866-749-8879 (f)
>
> www.rstp.com
>
>
>
> Confidentiality Warning: This e-mail contains information intended only
> for the use of the individual or entity named above. If the reader of this
> e-mail is not the intended recipient or the employee or agent responsible
> for delivering it to the intended recipient, any dissemination, publication
> or copying of this e-mail is strictly prohibited. The sender does not
> accept any responsibility for any loss, disruption or damage to your data
> or computer system that may occur while using data contained in, or
> transmitted with, this e-mail.If you have received this e-mail in error,
> please immediately notify us by return e-mail. Thank you
>
>
>
> *From:* Per von Zelowitz [mailto:[email-masked]<[email-masked]>
> ]
> *Sent:* Monday, March 10, 2014 11:35 AM
> *To:* ncallahan
> *Subject:* Re: Govtech Fund
>
>
>
> And attached is a brief deck.
>
>
>
> On Mon, Mar 10, 2014 at 9:59 AM, Per von Zelowitz <[email-masked]>
> wrote:
>
> Neil -
>
>
>
> A good friend, Alex Duff <http://www.linkedin.com/pub/alex-duff/0/31/710>,
> is raising money for this fund. They have a worthwhile angle, some early
> traction and I thought you may be interested. Not sure if RS is making any
> LP commitments. Alex will be in NY over the next couple of weeks. Please
> let me know if an intro is useful.
>
>
>
> Per
>
>
>
>
>
> Govtech Fund is the first-ever venture fund focused on investing in
> startups that are transforming the trillion dollar global government
> software & IT market.  The opportunity is due to a confluence of three
> large trends: budget constraints, sales cycle compression (largely due to
> software development costs dropping significantly, enabling pricing below
> procurement thresholds) and civil servant demographic/ cultural shift (1/3
> of all civil servants retiring in the next 10 years and the "new face" of
> CTO/ CIO is a 30-40 year old with an iPad in hand).
>
>
>
> In addition to Ron Bouganim, an accomplished entrepreneur and investor,
> the team also includes Tim O'Reilly - who is on the Fund's Investment
> Committee and is actively involved.
>
>
>
> Some recent developments since they started fundraising 9 months ago:
>
>
>
> * $17M+ has been committed against a $25M target.
>
>
> * Steve Case <http://en.wikipedia.org/wiki/Steve_Case> has signed on as
> the anchor LP, subscribing to 20% of the Fund.
>
>
>
> * Jeff Bezos <http://en.wikipedia.org/wiki/Jeff_Bezos> invested $2M.
>
>
>
> * Called $1M of capital from already committed LPs to make two "Pre-Fund"
> investments: SmartProcure <http://www.smartprocure.us/>  and  MindMixer<http://www.mindmixer.com/>.   Both
> startups are growing 10-30% per month, having sold their platforms into
> hundreds of government agencies in the past 18 months and are on track to
> book multiple millions in revenue this year (more detail below).
>
>
>
> * First close mid-Nov was $7M
>
>
>
> * Final closing Q2/14
>
>
>
>
>
>
>
> ..........................
>
>
>
> *1. SmartProcure*
>
>
>
> SmartProcure <http://www.smartprocure.us/> is a competitive intelligence
> database.  Target market is the 20 Million vendors that sell trillions of
> dollars of items (eg. chairs, pencils, printers, etc) to the US Government
> (Federal, State, City) every year.  The competitive intelligence data in
> the SmartProcure database (eg. product price points, discounts, volumes,
> etc) comes from detailed purchase orders that SmartProcure obtains from
> government agencies, for free - via open data laws.
>
>
>
> * 800+ customers signed in first 10 months including Home Depot, Citrix,
> Iron Mountain, Juniper Networks
>
> * Revenue bookings growing 10-30% per month; have grown 10x since we
> invested
>
> * $1.5M+ in first year (2013) total bookings
>
> * price point is still at introductory level ($1,000/year), so lots of
> upside price elasticity...for example: in September signed their first
> multi-year deal - *a $600K+ total contract value with a single customer*
>
> * Adding 2-3 new salespeople a month to keep up with demand.
>
> * 2,500 government agencies in 9 states have supplied 65M+ purchase orders
> (eg. these is how SmartProcure populates their purchase order dbase) and
> growing...agencies get free access to the database which in turn helps them
> save tens of millions of dollars.  Zero-friction supply of purchase orders
> for SmartProcure.
>
> * New York City just moved its entire purchase order database to
> SmartProcure.
>
> * On track to raise next round in Q2/14
>
>
>
>
>
>
>
> *2. MindMixer*
>
>
>
> MindMixer <http://www.mindmixer.com/> is an online forum product that
> enables "idea co-authoring" in secure public forums.   Target markets
> include government agencies (government->citizen), schools
> (parents->teachers), corporates (employer->employee).
>
>
>
> * 600+ cities signed in 18 months
>
> * $2M in 2013 GAAP revenue, $3.5M in 2014 new bookings
>
> * Received an acquisition 90 days after the Fund invested at 2x the Fund's
> cost basis (company turned it down).   Rather, acquirer has just invested
> $12M at 35% step-up to the Fund's investment; acquirer also received $5M/5%
> warrant (at a $100M valuation) as part of this investment (sign of
> confidence)
>
>
>
> --
>
> *Per von Zelowitz*
> *Marma Advisors *
>
> M: 347 260 1666
> E: [email-masked]
>
> S: pervonzelowitz
>
> T: @pvzed <https://twitter.com/pvzed>
>
>
>
>
>
> --
>
> *Per von Zelowitz*
> *Marma Advisors *
>
> M: 347 260 1666
> E: [email-masked]
>
> S: pervonzelowitz
>
> T: @pvzed <https://twitter.com/pvzed>
>
> <Govtech Fund Deck.pdf>
>
>