Now the company’s accounts have swelled by $21 million.
That’s thanks to a new funding round led by NEA and backed by Andreessen Horowitz, two investment and tech heavyweights, along with other firms.
The Series A round brings to $35 million the amount raised so far by Kaizen, founded in 2022.
Kaizen’s technology helps residents access and pay for such government services as recreational licenses for parks, as seen in state parks in Maryland.
Kaizen’s plans for expansion involve DMVs, courts, the federal government and other areas, according to KJ Shah, co-founder and COO of Kaizen.
“Kaizen focuses exclusively on resident services instead of intergovernmental tools or back office systems,” he told Government Technology via email.
Such work can reduce the stress that often accompanies those services, he said, using Maryland state parks as an example.
“The lack of an intuitive, modern and cash-free system for day passes drove frustrations amongst residents and visitors that [led] this to become a priority initiative for leaders across the state,” he said.
Kaizen’s customer base has grown more than tenfold since 2024, Shah said, with a ninefold increase in annual recurring revenue.
The company works with more than 50 agencies in 17 states.
Recent customer wins include Maricopa County, Ariz.; San Bernardino County, Calif.; Suffolk County, N.Y.; and the Cherokee Nation tribal organization.
Kaizen plans to use some of its new capital to expand its team of 30 employees to 50 as it prepares for more expansion, he said. Most hires will come out of the company’s New York headquarters.
“We decided early on that governments need and deserve platforms, not tools,” Shah said. “We’ve built and designed our software with core modules and primitives that can be effortlessly scaled beyond outdoor recreation.”
Late last summer, the company finished a gov tech nonprofit accelerator program operated by CivStart. Kaizen was one of nine startups that received focus groups, pitch, mentorship and fundraising support from experts.
Now Kaizen’s financial backers also include 776, Accel and Carpenter Capital.
“So much of VC attention has gone towards public safety and defense, [so] it’s easy to forget that tens of billions of dollars are spent by local, state and federal government agencies,” Shah said. “Overall, we feel incredibly optimistic about a future where America’s government technology rivals the speed, efficiency and beauty of the private sector.”
