Polimorphic is targeting a functionally overloaded sector in the U.S. economy.
When the Borough of Prospect Park, New Jersey, deployed a new AI-powered phone system last year, it wasn’t aiming for headlines. The goal was more modest: give its small team, just 26 employees, a break from the constant, repetitive burden of answering calls. Residents now interact with Polimorphic’s AI to get information on everything from marriage licenses to trash pickup, often after hours. The result? Fewer walk-ins, fewer voicemails, and a staff that can focus on more than just picking up the phone.
This kind of administrative relief is the opportunity that Polimorphic is chasing. The New York-based startup just announced an $18.6 million Series A, led by General Catalyst, with continued backing from M13 and Shine Capital. Its software is now used by over 200 public-sector departments across the U.S.. Polimorphic says the company’s tools have helped reduce voicemails by 90%, walk-in traffic by 75%, and save over 55,000 hours of staff time, according to their internal metrics.
A New Operating System for City Hall
Polimorphic sells an AI-first software suite that includes voice and chatbot-based virtual assistants, constituent relationship management (CRM), workflow tools, and permitting systems. While some legacy vendors offer similar modules, CEO and co-founder Parth Shah argues that Polimorphic’s value lies in offering a “native AI operating system” that can automate end-to-end workflows rather than layering AI on top of outdated tools. “We are more than just a chatbot,” Shah told Government Technology. “It’s not the public servant’s fault. They’re trying their best. They just haven’t had the right systems.”
The problem is partly structural. Local governments are expected to handle a wide range of responsibilities (utilities, permitting, public health, and more) with often under-resourced teams. Private-sector-grade tech is rare. Just 20% of the U.S. government’s $90 billion annual IT budget goes to modernization efforts, according to data cited by the company. Inconsistent funding makes procurement slow and upgrades difficult.
Polimorphic wants to overcome those challenges by building AI-enabled tools that are tailored to local policies and workflows, with a population based subscription fee. For instance, each deployment is trained on hundreds of pages of local regulations, helping the AI determine jurisdictional boundaries and routing responsibilities across departments. The AI can interact across multiple channels and supports 75 languages.
Expansion to Key States
Founded in 2022 by Parth Shah and Daniel Smith, Polimorphic first raised $5.6 million in a seed round in 2023. The startup has since leaned into the rising interest in applied AI, but with a focus on civic infrastructure rather than enterprise productivity or consumer tools. In doing so, it joins a growing wave of venture-backed “govtech” companies betting that governments are ready to digitize their operations beyond traditional enterprise resource planning (ERP) systems.
Investors say Polimorphic’s appeal lies in its ability to offer practical automation without requiring massive overhauls. “AI is the jet fuel that accelerates this adoption,” said General Catalyst partner Sreyas Misra in a statement. “Polimorphic has the potential to become the next modern system of record for local and state government.”
With the new funding, Polimorphic plans to triple the size of its engineering and sales teams. Its roadmap includes smarter integrations across channels, GIS-based service requests, and “agentic” AI that can help staff review and process permit applications more quickly. The company is also expanding in key states including Texas, Florida, and New Jersey, where Shah says demand is growing.
That expansion won’t be without competition. Players like IBM and Boost.ai are also active in the space, and larger ERP vendors are incorporating AI into their own suites. But Shah believes the company’s focus on end-to-end automation and usability gives it an edge. “Government inefficiency creates billions of dollars in waste,” said M13 general partner Latif Peracha. “Polimorphic’s solutions are built to solve that.”
