Weatherford Capital co-founder on the hot market for gov tech after OpenGov exit

The following is a copy of an article published in the Tampa Bay Business Journal on March 4, 2024. The full article can be found here.

Weatherford Capital hit a major home run with the sale of its minority stake in OpenGov to telecommunications giant Cox Enterprises last week.

The $1.8 billion valuation the government software platform received in that transaction reflects the growing momentum behind the market for public sector-focused technologies, according to Weatherford Capital co-founder and Managing Partner Will Weatherford.

The Tampa private equity firm has developed a specialty around software and “cloud-native” technologies that will bring government agencies into the modern era, he said. OpenGov, a software that makes information sharing and communication among government agencies more efficient and transparent, is a foundational step in that direction.

“Ten years ago, cloud adoption in government was pretty rare. Five years ago, it was just coming in vogue, and now it’s everywhere,” Weatherford said.

OpenGov grew fivefold during the period after Weatherford Capital led a $51 million Series D in 2019. While the Redwood City, California-based company made several acquisitions, much of that growth was driven by an organic, steady expansion of the platform, he said.

Weatherford Capital also focuses on the financial, professional and consumer services sectors, with a portfolio that spans from insurance to telecommunications, public safety management software and payments.

Last year, the firm invested in IMG Academy, which was acquired by Stockholm-based private equity firm BPEA EQT for $1.25 billion, and Utility, a video and evidence management software for law enforcement agents.

Founders were reluctant to raise money in what they feared was a punitive market environment as interest rates rose last year, but optimism has rebounded, he said.

“People are gaining more confidence; they’re going back to the market, and it’s creating opportunities to deploy capital to businesses,” Weatherford said.

Weatherford Capital is this region’s largest private equity firm, with more than $1 billion in capital under management and 22 portfolio companies.