Top 6 Venture Capital Firms For Govtech Startups

For founders in the Govtech and civic tech space, preparing to raise capital means finding investors who truly understand your mission. Knowing which government technology venture capital firms are actively funding companies like yours is a critical first step.

To help you prepare, our team has curated this overview of top Govtech VC firms. Use this guide to quickly identify the investors most relevant to your startup, whether you're at the seed stage or preparing for Series A and beyond.

Actively raising? You can now access non-dilutive funding options like venture debt and credit lines through Rho Capital. Rho provides access to business banking, corporate cards, and bill pay — built for startup teams moving fast.

Key Takeaways

• Securing venture funding provides Govtech startups with the capital needed to scale operations, develop technology, and pursue long-term government contracts.
• The Govtech sector is supported by a mix of specialized investors like the Govtech Fund and public-private partnerships, with notable backers including Ben Franklin Technology Partners of Southeastern Pennsylvania, DARPA, and the U.S. Department of Commerce's Economic Development Administration.
• If you are raising or have just closed a round, Rho helps you manage your new capital with integrated business banking, corporate cards, and automated bill pay.

Which VC Firms in Govtech Are Right for Your Stage?

Knowing which investors to approach is critical at every stage of your company’s growth, from its earliest days to a future exit. Here is a brief overview of Govtech venture capital firms and the stages where they typically invest.

Pre-seed and Seed VC Firms in Govtech

Pre-seed and seed funding are the earliest forms of capital, typically used to validate an idea, build a minimum viable product, and achieve initial market traction. For civic tech startups at this stage, investors like the Govtech Fund and public-private partners such as Ben Franklin Technology Partners of Southeastern Pennsylvania are key players, while government bodies like the U.S. Department of the Treasury also provide grant funding.

Early Stage VC Firms in Govtech

Early-stage funding, which includes Series A and Series B rounds, is designed to help you scale your team, expand your product, and secure larger government contracts. Among the early-stage Govtech VC firms that support this growth are Ben Franklin Technology Partners of Southeastern Pennsylvania and Mubadala Ventures, with the specialized Govtech Fund also being a significant investor for startups raising Series A rounds.

As you approach these crucial growth rounds, Rho Capital can connect you to non-dilutive funding options like venture debt and credit lines. Our guided matching process helps you access financing tailored to your business model without chasing lenders or giving up more equity.

Late Stage VC Firms in Govtech

Late-stage venture capital is for established companies looking to accelerate growth, enter new markets, or prepare for an exit through an acquisition or IPO. At this mature stage, late-stage Govtech VC firms like Mubadala Ventures provide significant growth capital, and the Govtech Fund also participates in later rounds for its portfolio companies.

Keep in mind that some investors, including many on this list, invest across multiple funding stages, from seed to exit.

Here is our overview of the top VC firms focused on the Govtech sector, with key details on their investment stages, geographic focus, and what makes each a notable choice for founders.

1. Ben Franklin Technology Partners of Southeastern Pennsylvania

Ben Franklin Technology Partners is a long-standing public-private venture fund based in Philadelphia that supports technology-based economic development. Since its founding in 1982, it has become a key part of the region's innovation ecosystem.

The firm invests across seed and early stages, often providing grant funding alongside traditional venture capital. Its portfolio highlights a focus on impactful sectors like healthcare and Govtech, with a standout exit in InstaMed, which was acquired by JPMorgan Chase.

This investor is an excellent match for early-stage founders, especially those based in the Mid-Atlantic region, whose technology aligns with regional economic growth. Companies in complex, regulated industries will find their experience particularly valuable.

• Investment stages: Early Stage Venture, Grant, Seed
• Industries of focus: Government, Financial Services, Commercial Real Estate, News
• Geographical presence: Philadelphia, Pennsylvania
• Founded: 1982
• Notable portfolio company: InstaMed (acquired by JPMorgan Chase)
• Number of investments: Over 230

You can refer to their website here.

2. Govtech Fund

The Govtech Fund is one of the first venture capital firms exclusively focused on startups building technology for the public sector. They invest across a company's entire lifecycle, from seed and early stages to later growth rounds.

As their name suggests, the firm is dedicated to the Govtech space, backing companies that modernize government operations. Their portfolio includes significant names like Mark43, a public-safety software provider, and SmartProcure, which operates the procurement data platform GovSpend.

This firm is a strong match for founders building purpose-driven technology specifically for government agencies. If you are creating solutions for public safety, procurement, or civic engagement, their deep network and expertise can be a major asset.

Once you secure funding from a specialized investor, Rho’s integrated financial tools—including business banking, corporate cards, and automated bill pay—help you manage and deploy capital efficiently.

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

You can refer to their website here.

3. DARPA

DARPA, the Defense Advanced Research Projects Agency, is the central R&D organization for the U.S. Department of Defense. Since its creation in 1958, it has been responsible for funding breakthrough technologies to prevent and create strategic surprise.

The agency focuses on high-impact research in areas like national security and information technology, backing ambitious projects often considered too high-risk for traditional venture capital. Its portfolio includes foundational companies like NVIDIA and Moderna, alongside deep-tech startups such as Atom Computing and Ayar Labs.

DARPA is an ideal partner for founders developing dual-use or "deep tech" solutions with clear defense and national security applications. If your work involves fundamental breakthroughs in fields like AI, quantum computing, or advanced materials, DARPA's support can be transformative.

• 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

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 leads the government's economic development agenda. It promotes innovation and competitiveness to help create jobs and strengthen regional economies.

The EDA's primary funding mechanism is grants, directed toward initiatives in business development, career planning, and government administration. This focus signals a commitment to foundational economic support rather than a traditional venture capital model seeking high-growth tech exits.

This agency is an ideal partner for founders whose work directly contributes to U.S. economic growth and aligns with public sector goals. If your startup is focused on job creation or community development, an EDA grant can provide critical non-dilutive funding.

• Investment stages: Grant
• Industries of focus: Business Development, Career Planning, Government, Office Administration
• Geographical presence: Washington, D.C.
• Founded: 1965
• Number of investments: Over 490

You can refer to their website here.

5. Mubadala Capital Ventures

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

The firm invests from early stages through to post-IPO, signaling its capacity to support companies throughout their entire growth journey. Its portfolio features deep-tech pioneers like quantum-computing company IonQ and AI-driven drug discovery firm Recursion Pharmaceuticals.

Mubadala is a strong fit for founders of capital-intensive technology companies aiming for significant scale and a public market exit. If your Govtech startup operates in a complex field like AI or advanced hardware, their experience backing ambitious ventures is a clear advantage.

• 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, Recursion Pharmaceuticals, Exscientia
• Number of investments: 122

You can refer to their website here.

6. U.S. Department of the Treasury

The U.S. Department of the Treasury is the executive agency responsible for promoting economic prosperity and ensuring the nation's financial security. Established in 1789, it plays a foundational role in managing federal finances and economic policy.

While it primarily provides grants, the Treasury supports technology that aligns with its mission, particularly in the finance and Govtech sectors. Its funding initiatives have supported fintech innovators like the robo-advisor Betterment and the AI tax-filing startup April, for which the Treasury reportedly led a Series A round.

The Treasury is a good match for founders developing technology that modernizes financial services or strengthens economic infrastructure. Companies focused on tax automation, digital wealth management, or open banking may find its grant programs to be a valuable source of non-dilutive capital.

• Investment stages: Grant
• Industries of focus: Finance, Financial Services, Government, GovTech, Law Enforcement
• Geographical presence: Washington, D.C.
• Founded: 1789
• Notable portfolio companies: April, Betterment, Brankas, Tumelo
• Number of investments: 34

You can refer to their website here.

What This Tells Us About The VC Scene for Govtech Companies

The funding environment for Govtech companies is supported by a varied group of backers, extending beyond typical venture capital. This overview shows a healthy mix of specialized funds, government agencies providing grants, and public-private partnerships. For you as a founder, this means there are multiple avenues for funding to explore, from non-dilutive grants to equity investments.

There is significant support for companies at the seed and early stages, but the presence of firms that invest through later rounds shows that capital is available as your company scales. The investors are largely concentrated on the U.S. East and West Coasts, pointing to key centers for the industry. After you secure your funding, our integrated financial tools—including business banking and corporate cards—help you manage and deploy that new capital effectively.

Raise Confidently with Rho

When you're fundraising, your time is your most valuable asset. A focused list of relevant investors allows you to direct your energy where it will have the greatest impact on your Govtech startup.

If you’re seeking funding, Rho Capital connects you to non-dilutive funding options like venture debt and credit lines through a fast, guided process. We help you access financing tailored to your business model without giving up more equity.

Once your capital is secured, our integrated platform helps you manage and deploy it efficiently. Rho provides the tools you need—from business banking and corporate cards to automated bill pay—to put your funds to work.

FAQs about Venture Capital Firms Focused on Govtech

Are there Govtech VC firms in Europe?

Yes, the European Govtech market is growing, with dedicated funds like Public and Oxx emerging. These firms invest in startups that are improving public services across the continent, from London to Berlin, creating new opportunities for founders.

What are civic tech venture capital firms?

Civic tech VC firms fund startups that build tools to improve citizen engagement and government transparency. They look for companies that help connect people with public services and data, strengthening the relationship between citizens and government.

Which VCs focus on smart city technology?

VCs focused on smart cities back startups building technology for urban infrastructure, mobility, and sustainability. Investors like 2150 and Tin Shed Ventures support companies that make cities more efficient, connected, and responsive to residents' needs.

Are there VCs that specialize in AI for Govtech?

Yes, many Govtech investors are actively seeking AI-driven solutions that can automate processes and improve public services. Firms look for strong applications of AI in areas like public safety, data analysis, and administrative efficiency for government agencies.

How can I identify the best Govtech investors for my startup?

Research investors whose portfolios align with your mission. If you need non-dilutive options, Rho Capital can connect you with venture debt and credit lines. A targeted approach is more effective than contacting a broad list of firms.

How can Rho help my Govtech startup manage its funding?

Once you secure capital, our integrated platform helps you manage it. Rho provides business banking, corporate cards, and automated bill pay, giving you the financial tools to deploy your funds and scale your operations effectively.