Zencity, a leading provider of AI-based insights for local governments, announced Wednesday the closing of a $13.5 million funding round.
With the latest infusion of capital, the company plans to continue to expand its product's ability to serve the unique needs of state and local government agencies, particularly during these times of uncertainty. The funding will also aid in building new strategic partnerships and further expanding the company's market presence.
The round was led by venture capital firm TLV Partners and joined by strategic investor Salesforce Ventures, in addition to the company's existing investors Canaan Partners Israel (CPI), Vertex Ventures, Microsoft's venture fund M12, and i3 Equity Partners.
"We are proud to be able to help the heroic women and men of local government at a time when resident feedback is incredibly valuable and are looking forward to continuing in these efforts thanks to our incredible partners," said Eyal Feder-Levy, Zencity CEO. "Now more than ever, this investment is further proof of local governments' acute need for real-time resident feedback. The ability to provide municipal leaders with actionable data improves the efficiency and effectiveness of their work."
Zencity uses advanced AI to provide local government agencies with actionable insights about their communities' needs and priorities based on discourse in digital channels. The platform collects millions of resident-generated data points from a multitude of sources and using award-winning AI algorithms, transforms this mass of unstructured data into real-time and ongoing insights for local government leaders. These capabilities allow local governments to understand wide-scale community feedback and ensure they can truly hear the range of their residents' voices.
Founded in 2015, the Tel Aviv-based company has been growing exponentially and today supports over 150 cities and counties of all sizes across four countries and 28 US states - including major cities like Los Angeles, Houston and Chicago, and mid-size communities like Fort Lauderdale, FL, and Dayton, OH.
During this turbulent time, as local governments battle the COVID-19 pandemic and undertake the task of economic recovery, Zencity's platform has been pivotal in their responses. Local governments face a host of unique challenges: creating and enforcing social distancing policies, supporting local businesses, managing health services, and above all, providing their citizens with accurate and timely information.
These challenges require understanding their residents' needs, concerns and priorities in real time and on a wide scale, to ensure a quick feedback loop as they shape their policies, actions and messaging. Since the start of the pandemic, Zencity has added dozens of government agencies to its network.
"We see great value in the unique approach taken by Zencity and are excited to lead this funding round," said Eitan Bek, Managing Partner at TLV Partners. "This is our first investment in a government focused company, and we see the amazing potential in supporting this sector's needs. It is usually a "tough" market to penetrate, let alone scale in, and we were inspired by what Eyal, Ido and their government-obsessed team has been able to achieve."