Startup CityBase Raises $6.25 Million In VC Funding

CityBase, the Chicago startup that aids cities in reaching and serving residents and businesses, announced on Thursday (July 7) it raised $6.25 million in a Series B round of funding.

The round was led by KDWC Ventures, which invested $4 million. “CityBase will be instrumental in applying technology common in the private sector to solutions that address the unique context and challenges faced by local government,” said KDWC Partner Terry Diamond. “We are looking forward to supporting CityBase as it helps local governments utilize technology that provides better service to their constituents and allows them to allocate increasingly scarce resources to meet the needs of their citizens.”

CityBase, which came on the scene in January of last year, creates technology, designs payment and communications channels and aggregates data for municipalities, agencies and utilities. It relies on proprietary academic research, design and data-driven analysis to support the cities. The company has a cloud-based Software-as-a-Service platform that integrates with the databases of local government agencies and centralizes the interactions city agencies have with customers in one place. KDWC Ventures, which is based in Chicago, is one of the city’s largest venture funds and invests in B2B SaaS companies that are based in the Midwest.

In an interview with Chicago Tribune, CityBase Chief Executive Mike Duffy said the company has close to 40 customers and charges them monthly based on the volume of transactions. CityBase is behind the online payment portals for Indianapolis and Marion County. In those two places, users can pay online for traffic tickets and other debts. Duffy noted that dealing with cities can be frustrating for customers who are used to interacting online in the private sector and expect it from the city as well. Duffy told Chicago Tribune that CityBase wants to improve the user experience for cities’ customers. “CityBase was born to help local governments evolve their revenue collection and service delivery methods with the use of a SaaS-based technology platform that integrates and streamlines both city operations and the citizen experience,” Duffy said when announcing the round of funding.