The round was led by private equity firm Frontier Growth. Michael Ramich, a partner at the firm, is joining ClearGov’s board of directors.
The investment round comes as ClearGov announced that it now serves more than 500 customers. The new investment round also follows the launch last year of a new ClearGov product called Capital Budgeting, cloud-based software designed to help local governments keep track of capital project proposals — a need that is likely to increase for many governments as new federal infrastructure dollars work their way to local agencies.
According to ClearGov, the new capital will boost hiring and product expansion.
“Given Frontier Growth’s deep experience in the gov tech sector and their enthusiasm for our market position, we felt they were a perfect fit to lead this round,” said Chris Bullock, ClearGov CEO and co-founder, in a statement. “With this new round and our strong momentum, we intend to fortify our leadership position in the local government budgeting and communications space.”
This new investment round signals an optimistic view of the growth potential of the local government technology space, at least according to Ramich.
“In addition to ClearGov's proven track record and potential for growth, we were impressed with their commitment to modernizing the local government budget process,” he said via that same statement. “A more efficient budget process saves governments time and money, promotes transparency and makes critical financial data more accessible to its citizens.”
Indeed, this new investment round comes as the gov tech space — both at the local and state levels — is heating up, with no signs of cooling down. That’s thanks to such factors as the ongoing digitalization of many government functions and the need during the pandemic to offer more virtual tools for citizen engagement and other tasks.
As those trends continue, more companies in the gov tech space are trying to gain more share via budgeting tools, as is the case with ClearGov.
Springbrook Software offers a recent example of that. Just before the holidays, the ERP technology provider released its new Advanced Capital Budgeting and Planning platform. Springbrook said that the Advanced Capital Budgeting and Planning software can reduce budget management and development time by half.
