citybiz+ JMI Equity Backs SimpliGov’s Bid to Push Workflow Automation Platform for Government

Baltimore-based JMI Equity, which specializes in backing software companies, has made a strategic growth investment in SimpliGov, a Sacramento, Calif.-based no-code workflow automation platform for government organizations. Financial terms were not disclosed.

The growth investment firm’s partners, Brian Hersman and Chase Thomet, joined SimpliGov’s board subsequent to the investment.

Targeting Public Sector

“We are excited to support SimpliGov in its next phase of growth,” Hersman and Thomet said in a release. “The team has built a market-leading platform that is transforming how governments operate, and we see significant potential to continue to expand its impact in the public sector.”

Hersman was previously an analyst at McKinsey and a senior associate at Vista Equity Partners. At JMI, he oversees its investments in Eptura, Greenlight Guru and Intradiem, among others. Thomet, who joined JMI in 2014, was previously an investment banking analyst in the M&A unit of Bank of America Merrill Lynch. He oversees JMI’s investment in Greenlight Guru, Swiftly and Visiting Media, among others.

JMI’s investment will accelerate SimpliGov’s platform development, enabling it to expand into new government use cases beyond its current leadership in workflows like licensing, permitting and public record management, the startup said.

Software Smarts

“This collaboration with JMI is a pivotal moment for SimpliGov,” said SimpliGov CEO David O’Connell. “We’ve seen tremendous success enabling governments to modernize their processes, and now we are excited to build on that foundation, delivering innovative solutions that address even more critical needs across public sector operations.”

JMI, whose hits include DoubleClick (acquired by Google), has invested in over 185 software businesses in North America and Europe, and completed over 120 exits. Its portfolio of cloud software companies represents $9 billion in combined revenue, $75 billion in aggregate enterprise value, the company said.

In 2023, JMI Equity closed the biggest fund in its 30-year history, receiving commitments for $2.4 billion. JMI Equity Fund XI LP, together with JMI XI Executive Fund LP, was oversubscribed, with demand exceeding the original $2 billion target.

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JMI is co-led by managing general partners Peter Arrowsmith, who joined the firm in 1996, and co-founder Harry Gruner, who in 2022 was, along with colleague Suken Vakil, named among the top 25 software investors by GrowthCap, a New York media firm.

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Gruner, along with Charlie Noell and John Moores, founded JMI with the goal of investing in high-growth software companies. Noell is now a businessman and racehorse owner. Both Gruner and Noell previously worked at the investment bank Alex.Brown. Moores is the founder and former CEO of BMC Software.

JMI has offices in Baltimore, Washington, D.C., and San Diego, Calif. It has about 30 investment professionals, of whom over 10 are general partners.