GT100 2023: Investors Bet Big on the Gov Tech Market

A few weeks before Halloween, a deal took place that could foreshadow how the government technology industry will look in 2023.

Granicus, which sells agenda, meeting and communications management software to public agencies, said it would buy Rock Solid, known for its citizen engagement tools. The deal marked another step toward what amounts to one-stop shopping for state and local governments in search of the latest digital services.

The spread of big tent platforms — already common in e-commerce — stands among the most notable trends for gov tech as the new year begins. It’s one that has certainly caught the attention of many public agency tech leaders, and it promises to help drive acquisitions, mergers and investments in the coming 12 months.

Meanwhile, those investors are looking to the gov tech space as a relatively safe haven for their money as fears of a recession continue to shape markets — and as the industry shows signs of its own slowdown, at least in certain areas. And as all that happens, state and local officials must confront the challenges of hiring and retaining tech talent, a situation that is leading to the growth of managed services by government.

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