Top 6 Venture Capital Firms For Govtech Startups

For founders in the Govtech and civic tech space, preparing to raise capital means more than just a solid pitch. It requires finding investors who understand the specific sales cycles and impact of public sector technology. Connecting with the right venture capital firm can make all the difference.

To help you find the right partners, our team at Rho has curated this overview of the top VC firms actively investing in government technology. Use this guide to quickly identify the investors who are most relevant to your startup's stage and mission.

Just raised, or about to? Set up your financial stack with Rho in minutes. Rho provides business banking, corporate cards, and bill pay — built for startup teams moving fast.

Which VC Firms in Govtech Are Right for Your Stage?

Whether your company is in its early stages or preparing for an exit, knowing which investors to contact is essential. We've put together a quick summary of VC firms that focus on Govtech, organized by investment stage.

Pre-seed and Seed VC Firms in Govtech

This initial funding stage is for new companies that are developing their core idea or building a minimum viable product. Some of the seed stage govtech vc firms you might connect with include Ben Franklin Technology Partners of Southeastern Pennsylvania, while government bodies like the U.S. Department of the Treasury and the EDA also provide foundational grant funding.

Early Stage VC Firms in Govtech

Early-stage funding, which includes Series A and B rounds, helps startups with a validated product and initial customer traction to scale their team and market presence. Govtech venture capital firms focusing on this phase include Govtech Fund, Mubadala Ventures, and Ben Franklin Technology Partners of Southeastern Pennsylvania.

Late Stage VC Firms in Govtech

Late-stage capital is for established companies with strong revenue streams that are preparing for large-scale expansion, a potential acquisition, or an initial public offering (IPO). At this mature phase, you'll find that investors such as Mubadala Ventures and Govtech Fund are active in the space.

Keep in mind that some government technology VC firms invest across multiple stages of a company's growth.

Below is a closer look at the top VC firms focusing on the Govtech sector. We've outlined key details about their investment stages, location of focus, and what makes each firm a compelling option for founders.

1. Ben Franklin Technology Partners of Southeastern Pennsylvania

Ben Franklin Technology Partners of Southeastern Pennsylvania is a long-standing organization that supports technology companies through its economic development programs. Based in Philadelphia, it functions as both a venture capital firm and an accelerator for promising startups.

The firm invests across seed and early stages, often through grants and direct venture funding, and has a broad industry focus that includes government technology. A key success was their investment in InstaMed, a healthcare payments network acquired by JPMorgan Chase.

This firm is a strong potential partner if you're an early-stage founder, especially if your company is based in the greater Philadelphia area. Their model is well-suited for startups seeking hands-on support alongside capital.

• Investment stages: Early Stage Venture, Grant, Seed
• Industries of focus: Government, Financial Services, Commercial Real Estate, News, Venture Capital
• Geographical presence: Philadelphia, Pennsylvania
• Founded: 1982
• Notable portfolio companies: InstaMed (acquired by JPMorgan Chase), Strados Labs, Navrogen
• Number of investments: 232

You can refer to their website here.

2. Govtech Fund

As one of the first venture capital firms dedicated exclusively to government technology, Govtech Fund finances companies from seed and early stages through to later rounds. Based in San Francisco, they have established themselves as a key investor in the civic tech space.

The firm’s portfolio demonstrates a clear focus on platforms that modernize core government functions, from public safety to digital permitting. Their investment in Mark43, a public-safety software provider often cited as a near-unicorn, shows their ability to back category-defining companies in the sector.

Govtech Fund is an excellent fit if you are building a company purely for the public sector. Founders seeking a partner with deep industry expertise and a network built specifically for this market will find them to be a strong match.

• Investment stages: Early Stage Venture, Late Stage Venture, Seed, Venture
• Industries of focus: Government, GovTech, Venture Capital
• Geographical presence: San Francisco, California
• Founded: 2013
• Notable portfolio companies: Mark43, GovOS (formerly SeamlessDocs), SmartProcure
• Number of investments: 34

You can refer to their website here.

3. DARPA

The Defense Advanced Research Projects Agency (DARPA) is the central research and development organization for the U.S. Department of Defense. Based in Arlington, Virginia, it operates differently from a traditional VC firm by funding breakthrough technologies for national security.

DARPA is known for backing ambitious, high-risk projects in areas like information technology and national security. Its portfolio includes foundational companies like NVIDIA and Moderna, which highlights its success in nurturing technologies that have massive commercial impact.

This makes DARPA a unique partner for founders working on deep-tech or dual-use technologies with clear defense applications. If your work involves fundamental scientific or engineering challenges, their support can be instrumental.

• Industries of focus: Government, Information Technology, National Security, Service Industry
• Geographical presence: Arlington, Virginia
• Founded: 1958
• Notable portfolio companies: NVIDIA, Moderna Therapeutics, Atom Computing, Ayar Labs, Umbra
• Number of investments: 44
• Number of exits: 9

You can refer to their website here.

4. US Department of Commerce, Economic Development Administation

The U.S. Department of Commerce's Economic Development Administration (EDA) is a federal agency that supports regional economic growth. It promotes innovation and competitiveness across the country through targeted grant funding.

Unlike a typical venture firm, the EDA provides capital primarily through grants, which means founders can secure funding without giving up equity. Their approach is centered on fostering business development and strengthening local economies.

The EDA is an ideal funding source if your company's mission aligns with federal economic development priorities. It is particularly well-suited for founders seeking non-dilutive capital to support innovation and job creation.

• Investment stages: Grant
• Industries of focus: Business Development, Career Planning, Government, Office Administration
• Geographical presence: Washington, District of Columbia
• Founded: 1965
• Number of investments: 494

You can refer to their website here.

5. Mubadala Capital Ventures

Mubadala Capital Ventures is the global venture capital arm of Mubadala, focusing on advanced technology from its base in San Francisco. As a corporate venture firm, it invests across multiple funds and strategies worldwide.

The firm supports companies from early and late venture stages through to post-IPO, demonstrating a capacity for long-term partnership. Their portfolio includes successful public companies like quantum-computing firm IonQ and AI-driven drug discovery company Recursion Pharmaceuticals, signaling a focus on deep-tech ventures with large-scale potential.

Mubadala is a good match for founders building capital-intensive technology companies that require a partner with significant resources. If your startup operates in a complex field and has a long-term growth plan, their multi-stage investment approach could be a strong fit.

• Investment stages: Early Stage Venture, Late Stage Venture, Post-IPO
• Industries of focus: Asset Management, Government, Venture Capital
• Geographical presence: San Francisco, California
• Founded: 2017
• Notable portfolio companies: IonQ, Archer, Capstan Therapeutics, Recursion Pharmaceuticals, Exscientia
• Number of investments: 122
• Number of exits: 25

You can refer to their website here.

6. U.S. Department of the Treasury

The U.S. Department of the Treasury is an executive agency focused on promoting economic prosperity and ensuring the country's financial security. While not a traditional venture firm, it provides grant funding to companies that align with its core mission.

The Treasury's investment activity centers on the finance and govtech sectors, with a clear interest in modernizing financial services. Its portfolio includes fintech companies like the robo-advisor Betterment and the AI-powered tax platform April, which Tracxn highlights as key investments.

This makes the Treasury a relevant funding source for founders building technology in the financial services or public sector domains. If you are seeking non-dilutive capital and your company's goals support economic stability, their grant programs are worth exploring.

• Investment stages: Grant
• Industries of focus: Finance, Financial Services, Government, GovTech, Law Enforcement
• Geographical presence: Washington, District of Columbia
• Founded: 1789
• Notable portfolio companies: Betterment, April, Brankas, Tumelo, Renegade Insurance
• Number of investments: 34
• Number of exits: 7

You can refer to their website here.

What This Tells Us About The VC Scene for Govtech Companies

This overview shows that the funding environment for companies in the Govtech sector is quite varied. You have access to a mix of specialized venture firms, government grant programs, and large corporate investors. This means different kinds of capital are available, from non-dilutive grants for early ideas to significant venture rounds for scaling your operations.

The investor base is particularly supportive of early-stage companies, though firms like Mubadala Capital Ventures and Govtech Fund also provide capital for later growth. Geographically, investors are concentrated in major hubs like San Francisco and the Washington, D.C. area. This variety gives you the flexibility to find a financial partner whose funding model and expertise truly fit your company's needs.

Raise Confidently with Rho

Fundraising requires significant focus, so approaching the right investors from the start is critical. We hope this list helps you connect with the partners who are best aligned with your company's mission.

Once your round is closed, putting that capital to work is the next priority. Rho can help you set up your financial stack in minutes so you can maintain your momentum.

Our platform gives you the tools to manage your new funding with confidence. We offer integrated business banking, corporate cards, and automated bill pay designed for growing startups.

FAQs about Venture Capital Firms Focused on Govtech

Are there govtech venture capital firms in Europe?

Yes, the European govtech market is growing, with firms like Public and Oxx investing in startups that serve the public sector. These investors often focus on companies that can scale across different countries and regulatory environments within the EU.

Which govtech VC firms are in Silicon Valley?

While many govtech investors are based in the San Francisco Bay Area, firms like Govtech Fund and Mubadala Capital Ventures are key players. They provide capital and connections to a network of public sector leaders and technology partners.

What should I look for in a Series A govtech VC firm?

At the Series A stage, seek investors with a proven record in scaling govtech companies. Look for partners who understand public sector sales cycles and can introduce you to key government agencies and procurement officers to accelerate your growth.

How do civic tech VC firms differ from general govtech investors?

Civic tech VCs often focus on startups that improve citizen engagement and community participation. While there is overlap, they may prioritize platforms for communication and local services over tools for core government administrative functions.

Are there VCs that specialize in AI for the govtech sector?

Yes, many govtech investors are actively seeking companies that apply AI to public services. Firms look for solutions that can improve efficiency in areas like data analysis, public safety, and administrative automation for government agencies.

How can Rho help after I secure funding from a govtech VC?

Once your round is closed, our platform helps you manage your new capital effectively. Rho provides integrated business banking, corporate cards, and automated payments, all designed for founders who need to move quickly and maintain financial control.