Former DOGE Staffers Launched Private Ventures
Dozens of former government efficiency staffers have pivoted to the private sector to pursue federal contracting opportunities.
Updated on Oct. 12, 2026 in Startups
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Approximately two dozen former Department of Government Efficiency staffers have transitioned into executive or founder roles at various startups. These ventures have collectively raised at least $500 million, with several alumni registering on federal contracting platforms.
Why it matters
Investors are advising these founders to carefully navigate ethics laws and prepare for potential congressional investigations. This scrutiny is heightened as stakeholders anticipate a potential midterm political shift.
Startups founded or backed by former staff have raised at least $500 million, with the cybersecurity firm Cathedral achieving a $1.4 billion valuation. At least six alumni have registered on the federal government contracting portal.
The players
Gavin Kliger
He previously served as the chief data officer for the Defense Department.
Elie Mishory
He transitioned into the role of chief regulatory officer at the sports prediction market Novig.
Cathedral
This cybersecurity firm reached a valuation of $1.4 billion following its launch.
Novig
This is a sports prediction market that gained approval from the Commodity Futures Trading Commission.
The details
Staffers are leveraging their federal experience to secure influential roles, including at the sports prediction market Novig, which recently received Commodity Futures Trading Commission approval. These moves are occurring despite existing two-year restrictions on seeking government contracts.
Timeline
Federal ethics laws were originally established in the 1970s.
Gavin Kliger ended his service at the Defense Department in April 2026.
Gavin Kliger began fundraising for the firm Cathedral in May 2026.
Market Landscape
This wave of career transitions underscores a broader industry trend where private startups aim to capitalize on federal service expertise to win government business. It positions these new ventures in direct competition with established contractors navigating the two-year restriction period for seeking government contracts.
Consumers may see increased government reliance on private-sector cybersecurity and data tools as these startups secure federal contracts. However, the potential for political shifts could create instability in service delivery for the average citizen.
The takeaway
Navigating the transition from public service to private business requires rigorous adherence to ethical standards to avoid legal repercussions. Founders should ensure their operations remain transparent to survive potential oversight in a changing political landscape.
Further reading
For more on emerging businesses in the current climate, explore the Startups section.
More information
View recent entries on the federal government contracting portal.
Source note: This article includes information reported by Raw Story.
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