Are federal integrators where technology goes to die? Here’s why one Silicon Valley investor thinks so.

From: Washington Business Journal

Cybersecurity is a key area of investment for Allegis Capital. But if a promising startup says it’s going to target federal government, Managing Director Bob Ackerman shows them the door as fast as possible.


“Integrators are where technology goes to die,” Ackerman said.

It’s not their fault, he added — they’re as much a victim of government bureaucracy as any. But what typically happens is a large systems integrator buys a promising cyber startup at a premium, then the team gets frustrated and disenchanted by the bureaucracy, and leaves to start a new company.

“The integrator is left with a shell of what they bought,” often writing off some of the buy when it doesn’t deliver on initial expectations, Ackerman said.

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