Godspeed Capital Management LP has been an active consolidator in lower middle market government technology and services, adding 14 companies to its portfolio since its founding about a year and a half ago — including three since mid-October.

“There are so many founder-owned businesses that ultimately need help in terms of institutionalizing their processes, building out their infrastructure and basically taking their business to the next level,” founder and managing partner Douglas T. Lake Jr. told The Deal following Godspeed’s recent deals in intelligence technology and healthcare architecture. Though sponsors such as Vista Equity Partners LLC, GTCR LLC and Insight Partners have begun to roll up government technology companies in recent years, Lake said that government seed capital and other factors have created a hotbed of startups that upgrade technology for state, local and federal offices.

Godspeed launched in April 2021 with anchor funding from East Rock Capital LLC, a New York firm that manages about $2.5 billion for high-net-worth families. Other investors include pension funds, family offices and financial institutions.

The Washington, D.C, firm backs businesses with $3 million to $30 million of Ebitda. “The sweet spot for our strategy is writing equity checks in the $50 million to $75 million zone,” Lake said, noting that equity investments can run as low as $10 million or exceed $100 million. The Godspeed founder likened the firm to a family office, because unlike a traditional PE firm its pool of investors give it the flexibility to hold investments for five to 10 years.