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From RV Sales Calls to Category Creation: How Zartico Built a New Market in GovTech

Ten percent of global GDP flows through the visitor economy, yet until recently, the government organizations managing these destinations relied on annual surveys and basic spreadsheets. In a recent episode of Category Visionaries, Sarah Lehman, CEO of Zartico, shared how her team built a new category in GovTech by bringing modern technology to this massive but underserved market.

When Sarah joined as CEO in January 2020, Zartico’s initial go-to-market strategy centered on trade show demonstrations. Then COVID hit. “We launched our MVP March of 2020. And so the world shuts down. And mind you, this is a travel tech B2B company that sold primarily at trade shows,” Sarah recalls.

Rather than wait for normalcy to return, the team made a bold move. “We’re going to rent an RV, and we’re going to drive it cross country, and we’re going to bring the trade show to the people,” Sarah shares. “The summer of 2020, my sales team got together with a couple of folks, rented an RV, literally drove it to the parking lots of our customers, set up a small little trade show booth with a makeshift demo and some plants, socially distanced.”

This unconventional approach worked because it demonstrated deep commitment to their market. Sarah notes: “I am blown away at the passion and the commitment of the leaders of destination marketing management organizations… tourism in many instances is an underappreciated economic engine of our world.”

The pandemic also forced Zartico to evolve their product strategy: “We launched under the premise of bring us all your data and we’ll put it nicely into a business intelligence tool to realizing during COVID what entities really needed was situational awareness, and they needed to know what was happening now, not what happened this past year from a reporting standpoint.”

For founders considering GovTech opportunities, Sarah challenges common assumptions about sales cycles: “While you think that Govtech, while that must be a twelve month process, we amassed a sales organization that had relationships in this industry. And so our average turn of a deal is between three to six months.”

The rapid growth led Zartico to make a counterintuitive decision in 2023 – intentionally slowing down to strengthen their foundation. “Your processes, your people and systems don’t necessarily keep up with you. So we decided this year we’re going to like, okay, let’s slow it down a little bit so that we can ensure that our foundation is strong.”

This focus on sustainable growth extends to their fundraising approach. “I believe your cap table is your soul,” Sarah explains. “I wanted to ensure that anyone we brought in as an investor, was aligned with who we are and where we wanted to go.” This meant extensive vetting – Sarah estimates she’s met with 150-200 investors over four years to find the right partners.

Looking ahead, Zartico aims to expand beyond their current customer base of destination marketing organizations and airports. “You can imagine a world where we work with these small businesses that also benefit from the visitor economy. You can imagine a world where we work with the sporting events and stadiums within that destination,” Sarah shares. The goal is to build a true destination operating system that helps entire communities optimize their visitor economies while maintaining quality of life for residents.

For founders building in new markets, Sarah emphasizes the importance of trusting your instincts earlier: “I would tell myself to trust my intuition more… I was a little deferential in moments that I had strong intuition around, like, oh, maybe we should think about this differently related to the tech stack. Or maybe we should think about this differently related to how we speak to our customers.”