← Back

Modernizing the Machinery of State & Local Government

May 23, 2025
Pathlight

We believe the software that underpins cities, public safety, and civic infrastructure is being rewritten from the ground up — and we're entering a once-in-a-generation window to get it right.

Across the country, state & local governments are racing to modernize. Legacy systems are collapsing under real-world stress. Residents expect the same speed and usability they see in the private sector. And for the first time — public funding, political will, and institutional urgency are all aligned.

The Need for Disruption

  • Local governments control $1.8 trillion in spend, yet most run on software built before smartphones existed
  • Legacy vendors are bloated, acquisition-heavy, and not product-first
  • Citizens expect better digital services, and public agencies are under pressure to deliver
  • Most systems — RMS, CAD, permitting, ERP, inspections — are actively breaking under today's demands

What We're Looking For

We believe the next generation of great GovTech companies won't just win on product. They'll win on speed-to-value, creative GTM, and by tackling urgent use cases that cut through procurement red tape.

We're especially excited about companies that:

  • Solve underloved, underserved workflows with deep operational pain (e.g., Fire/EMS ops, next-gen RMS, budgeting & ERP)
  • Build real-time decisioning platforms that bring dynamic intelligence to emergency response, civic planning, and public works
  • Deploy non-traditional GTM strategies — selling through HOAs, insurance, or piggyback agreements before ever filling out an RFP

To date, we've partnered with Obvio (AI-powered traffic safety and video intelligence) and RescueSight (real-time emergency response coordination), and we're actively looking to back more founders building the next wave of critical public-sector infrastructure.

We've mapped out the most urgent workflows, whitespace categories, and strategic GTM paths we're seeing in GovTech & public safety — explore the full deck for our structured view of the space.

We believe this moment is fleeting — and the teams that move now will define the next decade of how local governments function.