Technology’s challenges have dominated headlines for the last year, yet one space, government technology, continues to see a boom. As the industry is expected to grow to $590 billion valuation – with over $20 billion in funding the past 2 years alone – we are excited to be at the forefront of this growth today and looking to the future.
Today, Accela announced a significant company milestone as we pave the future for the govtech industry. We have received a new strategic investment by Francisco Partners (FP), a leading global investment firm that specializes in partnering with technology businesses.
As the govtech industry rapidly grows alongside unprecedented community challenges, this new partnership with Francisco Partners kick-starts Accela’s next chapter focused on elevating and expanding how we serve state and local governments.
Accela, Francisco Partners, and Berkshire Partners: Combined expertise to catalyze the modernization of govtech
We’re thrilled to bring in a new investment partner with such deep familiarity with all vectors of growth for a vertical software company. FP’s expansive portfolio proves their industry experience and expertise, and will parlay well into our work to simplify and streamline the government experience.
Francisco Partners has been impressed with Accela’s industry impact for years – especially appreciating our extendable technology platform and solutions, strong brand reputation, and sustained double-digit market growth. Like us, they understand the demands our customers face and see an opportunity to even better address them.
This new relationship enhances Accela’s ability to expand on our modern solutions and services needed for government operations and service delivery. It’s a strong endorsement of the digitization that Accela, our customers and partners have led and will continue to build together.
We are grateful for the past six years of support shown by Berkshire Partners, and we are particularly pleased they will continue with Accela on the journey forward.
FP’s significant investment follows Accela’s – and the govtech market’s – strong growth
Govtech growth is driven by the need to fix broken processes fueling larger societal problems – housing shortages, sluggish economies, climate change – and the push to modernize critical services to earn back residents’ trust. Accela is propelling the govtech industry forward amidst historic govt staff shortages and unprecedented federal funding for digital transformation, and FP’s new investment in Accela’s work is a testament to the opportunity of this space.
The new funding comes on the heels of a 31 percent increase in Accela’s SaaS annual recurring revenue, 36 percent in new accounts signed, and a net customer retention of 117 percent as we closed our 2023 fiscal year on June 30.
Accela serves more than 300 million residents worldwide, offering agencies a unified suite of cloud solutions and powerful, single platform to accelerate modernization, deliver critical services and build stronger communities.
We are grateful for our new relationship with Francisco Partners and continued partnership with Berkshire Partners as together we work to fulfill our mission to be the heart of government, vital to the expansion, growth and safety of the communities agencies serve.