Long Live GovTech: 2025 Trends Shaping a Lasting Future for the Sector in Spain
A decade ago, the public sector seemed almost inaccessible to entrepreneurs. Today, that’s history: Spain’s GovTech ecosystem is thriving. In this report, we take a step forward and peer into the near future, with a sharp, informed perspective.
In January 2025, the 'new world order' and the Trump era dominate the news cycles—with inevitably polarized opinions and debates. But in an unexpected twist, Elon Musk, the controversial CEO of Tesla, managed to put a seemingly technical issue, such as the redesign of government, at the center of the global conversation. Despite our initial skepticism, we cannot deny that we are following in his footsteps with curiosity.
Leveraging this surge of interest, we are thrilled to present our GovTech Report 2025. We explore key trends, highlight success stories from companies Gobe Ventures accelerated in 2023 and 2024, and analyze 20 niche startups to watch in the coming year. In total, we’ve gathered information on 40 companies with high public-value tech solutions ready to work with governments today.
According to our analysis, these are some of the key trends that signal a lasting future for GovTech:
1. I Have the Technology—Now What? Time to Invest in Use Cases
After the massive deployment of recovery funds, public administrators are seeking concrete answers to a critical question: "I have the technology, what’s next?" Investments are no longer focused solely on infrastructure or data; they are now directed toward practical applications that add tangible value to public services. This shift is creating an unprecedented opportunity for collaboration with specialized companies. Projects by the Government of Catalonia, SGAD, and Navarra offer valuable examples of how this shift is unlocking new opportunities for tech startups.
2. From In-House Development to Adopting Digital Products
Sometimes custom development isn't the most efficient solution, even though it remains important in certain cases. Public servants are increasingly seeking pre-built digital solutions that offer rapid integration and continuous upgrades. Startups and scaleups such as Councilbox are benefiting from this demand, as well as companies that "productize" their algorithmic developments, such as Foqum or Saturno Labs.
3. From Buying Technology to Buying – and Piloting – Innovation
Convincing legal teams and auditors that innovation must be piloted and, more importantly, paid for is a challenge. Convincing them of the risks of not doing so sounds like science fiction. However, we’re seeing an increasingly clear trend, backed by strong precedents: procurements using alternative models, where the price doesn’t weigh more than 10-15%, or mechanisms like Project Competition, which allow the piloting of innovation for projects exceeding 15,000 euros. We estimate that by 2025, there will be over 20 precedents for these types of procurement models, and we believe the Dynamic Acquisition System will generate significant discussion.
4. From B2B to B2G to Grow and Scale
The B2B (business-to-business) ecosystem is maturing and increasingly exploring opportunities in the B2G (business-to-government) market. Established private-sector companies, such as Sahmman, are beginning to engage with the public sector. This trend is also sparking interest from investors and associations, who view collaboration with the public sector as a key lever for scalability and growth.
5. From Competition to Collaboration: Enterprises and Startups Unite for Solutions
Historically, public sector providers have faced a 'red market' where price outweighs all other factors. This approach has stifled innovation and hindered productivity. However, we’re now seeing a shift to collaborative models, where large companies and startups work together to deliver solutions that truly add value to the public sector.
These trends point to a promising future for GovTech. To dive deeper into these insights, we invite you to download our full report and explore how governments are evolving to meet the challenges of 2025 and beyond. Happy reading!