Municipalities as customers

by an investor from Harvard University - Harvard Business School

2 years ago

Has anyone seen any deals where a high portion of the company's revenues coming from the public sector (namely municipalities, or eventually states). If so, would be curious to understand how procurement rules impact those contracts.

1 like
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8 comments

investor from University of Pennsylvania - The Wharton School

+1 to Joe who runs a fantastic GovTech business. I'm a serial GovTech entrepreneur (3x exits, last to Motorola) & investor. Broad topic but in general I like companies that have large groups of municipalities as while they can be long sales cycles, they are sticky once you get in so high retention & generally will want to buy additional products from you as you expand your offering. If you do a good job with 1, they will tell the nearby city/counties so there is a good referral mechanism and aligned incentives. If I can be of help, feel free to send a note - DM or --@----.com .

2 years ago | like reply | 0 likes

searcher from University of Notre Dame

Depends on what you are selling to municipalities. Like normal companies, there is a threshold which a person can spend and not have it on the budget or have it go though committee. I know a startup which sold a SaaS product to municipalities and they strategically priced it below this number. Somewhere around $5000 per year.

2 years ago | like reply | 0 likes

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