GovWorks

govWorks Inc. was a dot-com company founded in 1998 by Kaleil Isaza Tuzman, Tom Herman, and Chieh Cheung. It went bankrupt when the dot-com bubble burst in 2000. The company's history is documented in the 2001 documentary '' Startup.com''. Originally known as Public Data Systems, the company produced software to help government clients track contracts and oversee purchasing functions. However, as the Internet boom accelerated, the company transitioned toward becoming an Internet web portal.

During the company's existence, cities such as Grand Island and New York expressed interest in using its services. A survey by ''The Economist'' found that people preferred to pay fees owed to the government over the Internet due to its convenience. Nevertheless, govWorks was unable to overcome many of the challenges faced by start-ups, and CNET ranked it as one of the top ten dot-com failures of the time.

The govWorks website was relaunched under new ownership in January 2018. The current iteration of govWorks is related to its predecessor in name only and expedites passports and travel visas.

History

govWorks was founded in May 1998, with eight employees, and was originally known as Public Data Systems. The service delivery model for govWorks was inspired by Tuzman, after he found a two-year-old parking ticket in his New York City apartment. govWorks offered a service that enabled citizens to pay municipal fees through its Internet portal. The initial launch of govWorks.com online services occurred in October 1999 in select markets in Massachusetts and Connecticut, with a full-scale rollout planned for early 2000.

The company aimed to provide a web portal allowing citizens in local communities to access or pay for city services, apply for jobs, or receive community information. However, factors including mismanagement, capital demands, pressure for speed products to the market, and poor service execution, contributed to the company's failure. In January 2001, Tuzman and investors sold the company to First Data Corporation. According to public statements by co-founder Tom Herman, govWorks had used approximately $60 million in venture capital during its three years of existence.

Employee count grew rapidly, reaching 30 by August, 1998, and 70 by October, 1998. As additional capital investment was secured and it neared its full-scale rollout in 2000, the company expanded further, with headcount growing from 120 employees in January 2000 to over 250 employees in April 2000. However, govWorks struggled with internal power struggles and governance issuesmetreo.com: http://www.symphony-metreo.com/news/articles/FT2/FT-Shutdown.html that contributed to its demise.

By late 2000, as losses mounted and the company failed to meet its service targets, workforce reductions began. In November 2000, govWorks cut staff to 60 employees in an effort to reduce its $1 million per month in overhead costs. The company was sold to First Data Corporation in January 2001.

Documentary

The rise and fall of govWorks was chronicled in the documentary film Startup.com, which was released by Artisan in May 2001, and won the Grand Prize at the 2001 Sundance Film Festival earning $765,000 in initial box office receipts.

Competitors

One of govWorks's main competitors was Atlanta-based EzGov.com, which offered software to local governments and municipalities to allow citizens to pay parking tickets, taxes, and obtain other city services online 24 hours a day. EzGov co-founder, Bryan Mundy, was invited by Tuzman to tour govWorks offices prior to either company releasing their software; this visit was shown in ''Startup.com''. On January 15, 2001, Mundy died of smoke inhalation during a fire in Mundy's Atlanta, Georgia home.

In addition to EzGov, govWorks faced other competitors, some offering similar services at lower or no cost through alternate financing models, in contrast with govWorks' client-funded approach.

Bankruptcy filing

In March 2001, govWorks.com officially filed for Chapter 11 bankruptcy protection. At the time of filing, govWorks listed approximately $8 million in assets and $40 million in liabilities, having raised over $70 million through venture capital. Boalt Holdings, LLC acquired the domain and brand assets in 2017.

Current ownership

The govWorks website was relaunched once more under new ownership in January 2018, and now offers a software platform allowing companies to provide passport application creation services to US Passport holders.

References

{{Dot-com Bubble

Online companies of the United States
Internet properties established in 1998
Internet properties disestablished in 2000
Dot-com bubble