Not on the Panel
Unpacking what works when building in ███ ██████, GovTech, and the █████████ market.
👋 Welcome
Welcome to all our readers, and I would like to offer a quick apology for the delay. We held off publishing because a lot of news (for us) dropped. We hope it was worth the wait.
While the rest of the tech world chases consumers, the real story lies in the power, scale, and opportunities hidden within the $2.3 trillion global government market.
Our thesis is built on a radical but obvious insight:
“It’s ridiculous that almost no venture-backed companies work closely with government, given how many billions it spends.” - Trae Stephens, co-founder Anduril.
Not on the Panel decodes the jargon, tracks the deals, and provides the map to Australia’s $80B+ B2G sector. We’re not just writing about it; our GovTech & B2G angel syndicate is putting capital behind it.
In this week’s edition:
• Did we see the biggest seed round ever?
• Two startups that secured Government contracts without being ‘on the panel’ (have we finally busted that myth?)
And in our main feature:
• A deep dive into Australia’s second-largest Government market — New South Wales — and the highlights of the 2025–26 State Budget.
🤝 If you value our unique perspective, help us grow by sharing it with your network. Every new subscriber brings us closer to delivering more in-depth coverage of the overlooked and undervalued B2G market.
📰 This Week in Global GovTech
🇦🇺 Australia
🧠 NSW Opposition Proposes AI Minister Role
NSW Liberal Leader Mark Speakman has proposed creating a dedicated Minister for AI to oversee the responsible integration of AI across the public sector. The initiative aims to reduce the workload for teachers and nurses, boost productivity, and introduce "AI for Biz" loans to help small and medium-sized businesses adopt AI technologies.
Source: news.com.au
🧪 CSIRO and HILT CRC Launch Green Metals Innovation Network
CSIRO, in partnership with the Heavy Industry Low-carbon Transition Cooperative Research Centre (HILT CRC), has launched the Green Metals Innovation Network (GMIN). This $10 million initiative aims to accelerate the development of a domestic green metals industry, focusing on the iron, steel, alumina, and aluminium sectors.
Source: csiro.au
💰 NSW Budget points to B2G Innovation
NSW commits $80 million to boost innovation in 2025–26. Highlights include $17.7 million to fast-track major project approvals through a new Investment Delivery Authority. Expansion of Tech Central, MVP Ventures, and Housing Innovation Network. Support for diverse founders and net-zero technologies.
Source: NSW Government
📊 CSIRO: Commercialise AI or Miss the Moment
The National AI Centre (NAIC) and CSIRO released the 2025 Australia’s Artificial Intelligence Ecosystem: Growth and Opportunities Report. The report states that Australia excels in AI research but lags behind in patents. It also flags the relaunch of the AI Directory, aiming to link government, SMEs, and vendors.
Source: Industry.gov.au
💡 APS Innovation Month Kicks Off
The Australian Public Service Innovation month kicks off with this year’s theme, “Risk. Resolve. Results” Events are free and open for all local, state and federal government employees to join.
Source: APS Professions
🌐 Global
🛡️ Parsons Secures $137M DTRA Cyber Operations Contract
Parsons has been awarded a $137 million contract by the Defence Threat Reduction Agency (DTRA) to enhance cyber operations capabilities. This investment underscores the agency's commitment to strengthening the national cybersecurity infrastructure.
🖥️ Carahsoft Lands DISA ServiceNow Task Order
Carahsoft Technology Corp. has secured a task order from the Defence Information Systems Agency (DISA) to provide ServiceNow software solutions, aiming to streamline IT service management across defence networks.
📊 Equinoxys Wins FDA Data Analytics Support Contract
Equinoxys has been awarded a contract to support the Food and Drug Administration (FDA) with Data Analytics as a Service (DAAAS), enhancing the FDA's regulatory oversight through advanced data analytics.
🔐 Cyberattack Disrupts Glasgow City Services
Glasgow City Council reported a cyberattack that disrupted multiple public services, including parking, registration, and waste management systems, raising concerns about the cybersecurity resilience of local government infrastructures.
🤖 Thinking Machines Lab Raises $2B Seed Round
Thinking Machines Lab, an AI startup co-founded by former OpenAI CTO Mira Murati, has closed a $2 billion seed funding round led by Andreessen Horowitz. The company aims to develop advanced AI agents and models for various applications, including government services.
The company, founded last year, says its plans “to make AI systems more widely understood, customizable and generally capable,” and also intends “to build multimodal systems that work with people collaboratively.”
🎮 Biren Technology Secures ¥1.5B Ahead of IPO
Chinese AI chipmaker Biren Technology has raised approximately ¥1.5 billion (~$207 million) from state-linked investors as it prepares for a Hong Kong IPO, accelerating the development of high-performance AI GPUs.
💼 This Week in Australian B2G
(Week Ending 27 June)
📄 $1.769b in total reported contract spend
🖥️ $244.74 in software + digital services + I.T
Breakdown by Service:
💾 Software: $123.55m
☁️ SaaS (Cloud): $10.29m
🛠️ Software maintenance & support: $53.94m
🧱 Platform SaaS: $2.33m
⚙️ Software/hardware engineering: $1.29m
💻 I.T $53.32m
Breakdown by Procurement Method
📢 Open Tender: $37.64m
🗃️ Prequalified Tender: $0
📩 Limited Tender: $207.101m
GovTech Flex (Our selection of last week’s contract announcements)
Acorn PLMS, a Canberra-based AI learning management platform, will close out the 24/25 financial year with almost $3 million in government contracts. Since 2014, Acorn has secured $31.87 million in government work. Also worth noting — they finalised a $12.3 million Series A this week, led by Level Equity.
Onbrief Inc., a US-based military planning and workforce tool, secured a 1-year $1.4 million contract with the Department of Defence, using the all-too-familiar 10.3.d.iii “absence of competition” exemption.
Ortelia, a Queensland-based 3D software company, is revolutionising virtual exhibitions and cultural engagement, having won a $447,000 contract with the Australian War Memorial. Notably, they did it without being on a panel, thanks to an exemption under 10.3.d.iii. Proof that Australian companies can play the same game.
🧱Build Better
NSW Budget 2025–26: A Critical Review for GovTech and B2G Stakeholders
The NSW Government’s 2025–26 Budget, second only to the Federal Budget in national significance, functions less as a spending plan and more as a signal of intent. NSW accounts for nearly a third of Australia’s economic output. What it chooses to fund, delay, or leave out has implications that extend far beyond state borders. On the surface, this budget appears to be an exercise in fiscal discipline. Yet, beneath that veneer lies a deeper pattern: caution layered with control.
Anyone who has worked in government understands how to interpret the theatre of "out-year" projections. These are not firm commitments. They are carefully staged performances. Meant to generate headlines, influence markets, and delay decisions until more suitable political conditions emerge.
This is not a budget that encourages disruption. It serves as a signal to those who can reduce friction, expedite decision-making, and rebuild trust in institutions. For GovTech and B2G founders, that means fewer discussions about change and more demonstrating value within constraints. The opportunity exists, but it requires familiarity with government logic and alignment with public purpose.
Infrastructure Investment: Beyond Headlines
The headline figure is $118.3 billion over four years, averaging approximately $29.6 billion per year. However, this amount is mainly pre-committed.
The genuine opportunities lie in the margins, in unfunded line items and overlooked operational dependencies, where technology can enhance throughput, speed, or compliance.
Innovation Blueprint: Ambition Meets Ambiguity
The $79.2 million Innovation Blueprint shows intent but leaves questions unanswered.
$38.5 million for Tech Central aims to reposition Sydney’s innovation precinct; however, with the current Startup Hub closing in August and no clear handover strategy, there is a risk of momentum loss at a critical time.
A $20 million investment in Emerging Tech Commercialisation signals a focus on deep tech in housing and energy. It is niche, but deliberate.
$6 million for MVP Ventures maintains early-stage momentum. Still the most accessible path into government for first-time founders.
A $6 million investment to drive manufacturing adoption is narrow but reveals a quiet interest in industrial technology that integrates with legacy systems.
$4 million for a diversity-focused pre-accelerator is overdue and welcome. The challenge lies in execution.
$4 million for construction innovation acknowledges the digital deficit in the built environment. A late move, but necessary.
These initiatives are small in dollar terms, but meaningful in tone. They represent windows — not doors — into government transformation. Their success will depend on program design, delivery teams, and whether agencies are prepared to open procurement to newer players.
C3ybersecurity: Core Infrastructure, Quietly Upgraded
The $125.8 million allocated to the NSW Police Force is framed as a capability uplift, but it opens secondary opportunities for providers with credibility and domain knowledge.
Cyber Security Enhancement ($24.6 million): Signals a need for advanced threat detection and resilient platforms.
Critical Network Program ($50 million): Emphasises infrastructure modernisation, with potential for systems integration and service optimisation tools.
Secure Payroll Upgrade ($45.2 million): Reflects the state’s need for robust enterprise systems and trusted implementation partners.
Specialist Equipment ($6 million): Creates openings in digital forensics, training, and field-enabled tools.
This is not a public-facing transformation. It is internal modernisation. But future-proofing operational security at this scale still generates demand for GovTech expertise in cloud, identity, zero-trust architecture, and managed services.
AI in Planning: A Strategic Beachhead
Artificial intelligence is starting to appear in areas that matter. The DAISY pilot, supported by a $5.6 million Early Adopter Grant Program, reveals the state’s intent to use AI not as a showcase, but as infrastructure. It is about speeding up planning approvals, unblocking housing supply, and restoring performance in a high-pressure frontline service.
The client is the government. The end user is the citizen. Planning is where trust is won or lost, for residents building homes or developers managing large-scale risk. That makes it one of the most powerful levers for digital reform.
Target areas include:
Pre-lodgement assistance to reduce basic errors
Risk-based triage to identify non-compliance early
Analytics and spatial data to inform decision-making
Seamless integration with the NSW Planning Portal
The grants on offer (up to $500,000 for collaborative bids) are a clear invitation to founders who can build ethical, transparent, citizen-facing tools.
Strategic Implications
This is not a transformative budget. It is a careful one. However, the message remains consistent: technology plays a crucial role in restoring operational performance. The challenge for GovTech and B2G providers is to meet the government where it is risk-averse, under pressure, and short on bandwidth.
Solve real problems, fit into real processes and understand where the pressure is highest. That is where the budget is pointing.
🗺️ Our Government Market Map
For founders, the journey begins with a simple truth: the government can buy from you.
To prove it, we've built Part 1 of our market map: a live logo board showing the Aussie startups, by category, that are currently engaged in government contracts. Not all are landing huge deals; some are just getting started. But it’s the definitive proof that a pathway exists.
We're already working on successive layers of intelligence, such as adding contract values so you can see the scale. We are also still building a sister map of the overseas competitors you're really up against.
This market deserves sharper focus, better data, and real momentum. We are here for all of it.
📣 Are you a Startup Selling to the Government, or want to?
Each week, over 1,500 federal contracts are published on AusTender. We track what we can, but we cannot review every supplier to identify which companies are startups.
If you’re:
Tendering for government work
Already delivering to a government customer
Recently awarded a contract
We would like to hear from you.
You don't need a press release; leave a comment below or get in touch with us.
We’re always looking for stories that help explain what is actually happening in the B2G and GovTech markets.
📄 Method and Scope
AusTender publishes thousands of contract notices each week across a broad range of categories. While we rely on this data as our primary source, we cannot guarantee the accuracy or timeliness of individual listings.
We do not aim to cover every sector or supplier. However, if a startup is awarded a contract and we can verify it, we will include it, regardless of the classification. These stories help highlight where momentum exists and where future opportunities may lie.
✍️Meet the Editor
Hi, I'm Mat, a Startup advisor, former bureaucrat, investor, and lifelong procurement tragic.
Throughout my career, I’ve worked on four of the Commonwealth's most significant non-defence contracts. I remain frustrated that early-stage companies are often excluded from the government market.
This Substack is part of how I’m building in public. I work with founders and investors who see the $80+ billion business-to-government opportunity in Australia.
We also support founders in essential but often overlooked areas, such as governance, risk, and strategy.
If you’re a founder looking to break into government or seeking opportunities to back generational companies in this space, please don't hesitate to reach out. I’m always up for a coffee.