A new $50 million venture capital fund that will invest in government and regulatory-focused startups has debuted in Central Florida.
Winter Park-based Govo Venture Partners launched the fund on Thursday, which closed its first capital raise in December and will raise additional capital in the future.
While the fund will invest in companies regardless of geographic location, Govo is led by Florida-based partners, and said the Sunshine State is an ideal place to deploy capital. Plus, 90% of the money from the fund's first close came from Florida investors.
"If you look at the growth industries in Florida, especially the I-4 corridor, a lot of them tie to this thesis," Rob Panepinto — the fund’s managing partner and an active mentor, investor and organizer in the Central Florida tech and innovation community — told Orlando Inno.
Govo defines the type of companies it will focus on as “early-stage companies for which doing business with governments or navigating government regulations is an important success factor for growth.” Government can act as an “accelerant or a break” for innovative companies, and Govo aims to help startups working with governments scale while driving strong returns, Panepinto said.
In Florida alone, Govo’s investment thesis can apply to a wide range of industries, including aerospace, defense, fintech, transportation, artificial intelligence and health care, Panepinto added.
The fund’s partners consists of Panepinto and three general partners:
- Rob Panepinto: Panepinto is the director of innovation districts strategy and partnerships and a senior strategic adviser for the University of Central Business Incubation Program, as well as the chairman and founder of Orlando-based social enterprise accelerator Rally.
- Jonathan Kilman: Founder of Miami-based public affairs firm Converge Public Strategies
- Brian D’Ambrosio: Vice president of strategy and business development for managed care at Lake Success, New York-based Northwell Health and managing director of North Star
- 1858 Capital Partners: Winter Park-based mergers and acquisitions advisory firm focused on middle-market transactions
The careers of the fund’s partners equip them with expertise in government-related businesses and industries, Kilman said in a prepared statement. “We intend to invest in outstanding entrepreneurs leading companies that can benefit not just from our capital, but from our combined expertise and professional networks.”
In addition to the partners, Govo enlisted several strategic advisers who are experts in fields relevant to the fund:
- Waymon Armstrong: Founder and CEO of Orlando-based simulation company Engineering & Computer Simulations Inc.
- Mitch Bierman: Government and regulatory attorney who is a Miami-based partner at law firm Weiss Serota Helfman Cole & Bierman
- Shari Dingle Constantini: Founder of Casselberry-based Avant Healthcare Professionals; co-founder and president of Orlando-based disinfection startup Kismet Technologies LLC and executive chair of the Entrepreneurs Alliance of Orlando
- Patrick Murphy: Former U.S. Congressman; founder and CEO of Miami-based construction estimation software Togal AI
- George “Bud” Scholl: CEO of Orlando-based blood donation nonprofit OneBlood
- Michael Ward: Investment banker and M&A adviser who is managing director of 1858 Capital Partners
The launch of Govo stands out from the national startup funding picture. Startup fundraising across the U.S. fell from $344.7 billion in 2021 to $238.3 billion last year, and investors increasingly are wary of the macroeconomic headwinds that emerged in 2022, PitchBook founder and CEO John Gabbert said in the Seattle-based firm's latest report.
“Unable to justify the sky-high valuations seen in 2021 and retreating from the ‘growth-at-all-costs’ mindset seen in recent years, many investors are pulling back until the ecosystem returns to a more palatable normal," Gabbert said.
Meanwhile, metro Orlando startups ended 2022 strong, with $106.3 million in capital collectively raised in the fourth quarter. That was up 1,081% from $9 million in Q3 and down a slight 0.8% from $107.2 million in Q4 2021, according to a Jan. 12 report by PitchBook Data Inc. and the National Venture Capital Association.
The Q4 surge in fundraising means Orlando companies raised more capital in 2022 ($477.1 million) than 2021 ($418.5 million), according to the investment deals tracked by PitchBook and the National Venture Capital Association.
