FSH Technologies Raises $20M Series A for Government IT Software

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FSH Technologies has raised $20 million in Series A financing. Lachy Groom led the round and Acrew Capital co led it, with Operator Partners, Contrary, Cooley and a group of angels also participating.

The raise takes total funding to $25 million. An earlier $5 million seed round led by Contrary, with Acrew Capital, General Catalyst, Scribble Ventures and Basis Set Ventures, makes up the balance.

FSH builds government IT software for cities, school districts and state agencies, aimed at fixing outdated systems. The commercial argument is direct. The product is positioned as a replacement for hourly billed consulting firms and point solution vendors that have long handled this work.

The company is run by founder and chief executive Lilly Chen, chief operating officer Jason Chen and chief technology officer Rodda John, and it operates from Philadelphia. Its Pennsylvania office is the base for a planned nationwide expansion.

Capital will fund product development, sales growth and hiring that takes the team from 11 people to more than 45, mostly in engineering, design and client strategy.