Government Tech Sales
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Garry shares insights about selling modern software solutions to government agencies, particularly intelligence agencies, based on Palantir's early success. The core opportunity lies in the significant technology gap between Silicon Valley and government agencies, even those expected to have cutting-edge capabilities.
Key Points:
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Market Opportunity:
- Government agencies, including intelligence agencies (CIA, NSA), lack access to modern software engineering capabilities
- Even agencies expected to have the world's best technology are significantly behind
- Large organizations and governments have no access to software engineers or modern data capabilities
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Success Strategy:
- Gather first-hand information about how agencies actually work
- Talk directly to users within the agencies
- Identify specific technological gaps and needs
- Don't rely on media narratives about what agencies need
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Example Use Case:
- Palantir discovered agencies couldn't do basic data analysis that tech companies could
- Applied graph database technology (used in PayPal for fraud detection) to government needs
- Transformed complex data analysis capabilities into government-ready solutions
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Business Model:
- Target agencies spending significant money on outdated systems
- Focus on replacing legacy systems with modern software solutions
- Long sales cycles but potential for very large contracts
Garry Tan
President & CEO, Y Combinator
Hi, I'm Garry Tan. I live in San Francisco.
Find me on X at https://x.com/garrytan
I am President and CEO of Y Combinator. I was a partner there from 2011 to 2015.
I started a venture capital fund called Initialized Capital. It has just over $3.2B under management, usually funding folks very early (seed and Series A) often when it is just a few people just starting out.