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.

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“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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