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Polimorphic Raises $18.6M as It Beefs Up Public-Sector AI

The company is eyeing more market expansion as it works to build new AI-backed tools for its voice, customer service, CRM and workflow products. The CEO discusses how Polimorphic will use the fresh capital.

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The latest best on public-sector AI involves Polimorphic, which has raised $18.6 million in a Series A funding round led by General Catalyst.

The round also included M13 and Shine.

The company raised $5.6 million in a seed round in late 2023.

New York-based Polimorphic sells such products as artificial intelligence-backed chatbots and search tools, voice AI for calls, constituent relationship management (CRM) and workflow software, and permitting and licensing tech.

The new capital will go toward tripling the company’s sales and engineering staff and building more AI product features.

For instance, that includes the continued development of the voice AI offering, which can now work with live data — a bonus when it comes to utility billing — and even informs callers to animal services which pets might be up for adoption, CEO and co-founder Parth Shah told Government Technology in describing his vision for such tech.

The company also wants to bring more AI to CRM and workflow software to help catch errors on applications and other paperwork earlier than before, Shah said.

“We are more than just a chatbot,” he said.

Challenges of public-sector AI include making sure that public agencies truly understand the technology and are “not just slapping AI on what you already do,” Shah said.

As he sees it, working in governments in such a way has helped Polimorphic to nearly double its customer count every six months. The company has more than 200 public-sector departments at the city, county and state levels using the company’s products, he said — and such growth is among the reasons the company attracted this new round of investment.

The company’s general sales pitch is increasingly familiar to public-sector tech buyers: Software and AI can help agencies deal with “repetitive, manual tasks, including answering the same questions by phone and email,” according to a statement, and help people find civic and bureaucratic information more quickly.

For instance, the company says it has helped customers reduce voicemails by up to 90 percent, with walk-in requests cut by 75 percent. Polimorphic clients include the city of Pacifica, Calif.; Tooele County, Utah; Polk County, N.C.; and the town of Palm Beach, Fla.

The fresh funding also will help the company expand in the company’s top markets, which include Wisconsin, New Jersey, North Carolina, Texas, Florida and California.

The company’s investors are familiar to the gov tech industry. Earlier this year, for example, General Catalyst led an $80 million Series C funding round for Prepared, a public safety tech supplier focused on bringing more assistive AI capabilities to emergency dispatch.

“Polimorphic has the potential to become the next modern system of record for local and state government. Historically, it's been difficult to drive adoption of these foundational platforms beyond traditional ERP and accounting in the public sector," said Sreyas Misra, partner at General Catalyst, in the statement. "AI is the jet fuel that accelerates this adoption.”
Thad Rueter writes about the business of government technology. He covered local and state governments for newspapers in the Chicago area and Florida, as well as e-commerce, digital payments and related topics for various publications. He lives in Wisconsin.