The nonprofit, in operation for seven years, will “formally wind down … over the coming months,” according to an announcement on Monday.
CivStart’s board and co-founders have concluded that the nonprofit’s 501(c)(3) status no longer works for the organization. That classification applies to charities, education and religious institutions, researchers and others who receive tax exemptions for doing work considered beneficial to the public.
According to the statement, “CivStart’s next phase of work required a different organizational structure” than called for by that tax classification.
CivStart’s leaders said they will focus on CivStart Ventures, an outlet that offers the best chance for them to “have the greatest impact” in government technology. They describe CivStart Ventures as a “matchmaking” service between public-sector leaders and startups.
Young companies can use CivStart Ventures for information about procurement opportunities and to build industry relationships, among other tasks, while governments gain access to “pre-vetted” technology and expertise.
In November, CivStart Ventures said it would work with procurement services firm Civic Marketplace to help local public agencies buy “innovative products and services.”
“Even as the nonprofit concludes its operations, our commitment to the ecosystem continues in new forms,” the statement reads. “Our co-founders will remain deeply engaged in this work through CivStart Ventures and other avenues, and our board members will continue mentoring founders, advising leaders, and championing public-sector innovation across the country.”
The statement boasts that CivStart, via its tech incubation efforts, helped at least 56 startups gain solid footing in the gov tech industry.
Companies that went through the program have raised at least $152 million in venture capital. Additionally, some 75 percent of CivStart startups were founded by minorities or women, according to the latest figures.
CivStart’s most recent cohort, announced in September, included 16 startups out of 117 applications. The National League of Cities and GovAI Coalition partnered with CivStart on that cohort, which had a focus on artificial intelligence in local government.
Even as the CivStart incubator shuts down, similar programs remain open, offering help to gov tech companies. One example comes from New York City, which recently announced participants for the newest round of the NYC Smart City Testbed Program.
