The New York-based startup fund will use the money to launch an additional three tech companies a year with the goal of addressing issues such as public health, education and economic revitalization.
With $15 million of new investment, the New York startup incubator and private equity firm Hangar intends to launch three more companies a year focused on helping government tackle various problems.
According to a news release, the money went into an uncapped fund whose partners include the Kresge Foundation endowment and Michael Bloomberg.
Hangar was founded in 2014 with the goal of standing up new tech companies to help governments improve their services, partnering with governments, non-governmental organizations and large corporations to identify priority issues. Hangar’s LinkedIn page says it’s based in New York, with a team drawn from across the world but “deeply rooted in Silicon Valley.”
The news release said Hangar is trying to launch companies that could capitalize on the government IT market in the U.S. — which the Center for Digital Government* estimates spends more than $100 billion per year — which has traditionally been dominated by incumbent contractors. Hangar launched its first four portfolio companies over the past 18 months, including Camber, which is using mobility data and analytics to help state governments respond to COVID-19; Cornea, which uses machine learning to give data-driven insights to state, federal and international governments for disaster response; Outcome, which created new financing agreements to help college graduates repay student loans based on their post-graduation income; and Roster, a service that helps community health workers monitor Medicaid patients with chronic conditions.
“We’re at an unprecedented moment for our country, and our companies are addressing several significant challenges all at once, from combating COVID-19, to rebuilding our economy, to reducing the cost of higher education, to addressing disparate outcomes in health care,” said Josh Mendelsohn, a managing partner at Hangar, in the statement.
Hangar’s plan to launch more companies per year could be a statement of confidence about potential in the gov tech market, competing with a roster of organizations with similar missions that already includes CivStart, URBAN-X, 500 Startups, Y Combinator, StartX and DreamIt Ventures, among others.
*Editor's note: The Center for Digital Government is part of e.Republic, Government Technology's parent company.
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