AI-Based Insights Company Zencity Raises $13.5 Million

By Noah Long ● August 7, 2020
  • Tel Aviv-based Zencity — a leading provider of AI-based insights for local governments — announced that it has closed $13.5 million in funding

Tel Aviv-based Zencity — a leading provider of AI-based insights for local governments — announced that it has closed $13.5 million in funding. This round of funding was led by TLV Partners and joined by strategic investor Salesforce Ventures along with the company’s existing investors Canaan Partners Israel, Vertex Ventures, M12 (Microsoft’s Venture Fund), and i3 Equity Partners.

Zencity utilizes advanced AI to provide local government agencies with actionable insights about their communities’ needs and priorities based on discourse in digital channels. And the platform collects millions of resident-generated data points from a multitude of sources and using AI algorithms, transforms this mass of unstructured data into real-time and ongoing insights for local government leaders. These capabilities enable local governments to understand wide-scale community feedback and ensure they can truly hear the range of their residents’ voices.

Launched in 2015, Zencity has been growing exponentially and now 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; mid-size communities like Fort Lauderdale, FL, and Dayton, OH; and small communities like State College, PA.

As local governments battle the COVID-19 pandemic and undertake the task of economic recovery, Zencity’s platform has been pivotal in their responses. And local governments face a several unique challenges likecreating and enforcing social distancing policies, supporting local businesses, managing health services, and providing their citizens with accurate and timely information.

These challenges require a better understanding of 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. And since the start of the pandemic, Zencity has added dozens of government agencies to its network, including Austin, TX, Long Beach, CA, and Oak Ridge, TN.

With this round of funding, the company will continue to expand its product’s ability to serve the unique needs of state and local government agencies especially during times of uncertainty. The funding will aid in building out new strategic partnerships and further expand the company’s market presence.


“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. 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 CEO Eyal Feder-Levy

“We see great value in the unique approach taken by Zencity and are excited to lead this funding round. 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.”

— Eitan Bek, Managing Partner at TLV Partners