A Project from EthosLabs

$35K Non-Dilutive Funds for City Hall AI

Open compeition for the best AI startups that help local governments, funded and supported by market leaders.

Apply Now (Deadline Sept 30)

Why Apply?

If you're building AI for government — to help residents, streamline operations, or generate insights — the City AI (CHAI) investment program is purpose-built for you. We make it easy to get started, test quickly, and grow within the public sector. Because GovTech works differently than other sectors, we are offering different kind of financing: this is non-dilutive $35K, designed to avoid locking entreprenuers into a VC-style growth and accomodating for the up-and-down of GovTech businesses. We win when you win. We also provide hands-on guidance, proven market expertise, and connections to real customers.

So if you're a GovTech AI startup read on, and see if you're a fit. The application process is quick and efficient (we promise), and it's definitely worth your time.

Apply Now (Deadline Sept 30)

A project from EthosLabs, an international GovTech Advisory, led by Abhi Nemani


Why cities?

Cities are complex, data-rich, and deeply in need of solutions that work. AI promises untold potential, but still much of that promise has been missed -- both because of a lack of resources and deep understanding of city issues.

What do you mean by "non-dilutive"?

Many GovTech companies don't follow the typical VC route — and we think that's just fine. So instead of a typical VC-style convertible note or investment, we are offering debt or revenue-based financing (RBF): you pay back the investment as your company grows. (Decided on a case by case basis.) That means you don't have to give up space on the cap table, nor expect to have a VC-style exit. We just want to help you get the job done.

In addition, selected companies will recieve hands-on strategic help on product, go-to-market, and sales, along with access to a massive network of local governments, building out your growth pipeline. Each year, EthosLabs will select 1-3 companies to invest in. This is not an accelerator program; instead is a focused, small investment program where the selected startups get direct, hand-on advice.

Who Should Apply

If you’re building AI tools with real-world utility—whether for infrastructure, operations, or service delivery—and want to break into government, CHAI is for you. We’re looking for startups that see government not just as a market, but as a mission worth building for. Key decision criteria include existing traction (we want companies, not ideas), market opportunity, and team strength and fit.

Why EthosLabs?

Led by long-term GovTech entreprenuer, EthosLabs is looking for those promising ideas, making catalytic (though small) investments, and tooling new founders with support they need. Established in 2017, EthosLabs is a GovTech consulting and investment firm, with experience working with dozens of startups, investors, foundations, and private equity firms. With a local government network spanning over 100 cities, Ethos brings to bare not only vital go-to-market connections, including city leaders, GovTech executives, and founders.

What You'll Get

Debt Financing Mondel

Each startup receives $35,000 as non-dilutive equity, either a loan for revenue-based funding. No equity. That gives you early funding without long-term strings.

Strategic Advisory

Led by Abhi Nemani at EthosLabs, the revenue-based funding provides cash but also gives you real-world expertise in government technology — from product-market fit to sales growth strategies.

Network Access

We open doors. EthosLabs connects you to civic leaders, digital teams, and early customers who want what you're building — and can help scale it.

Key Details & Dates

Benefits for Startups

  • $35K in debt or revenue-based financing*
  • Access to key local government leaders for both insight and pipeline
  • Showcase events in front of other cities, investors, and press
* Exact terms determined on a case-by-case basis

The Process (Dates TBD)

  1. Application Deadline: September 30
  2. Application review and interviews: October
  3. Winners selected and investments made: October 31
  4. Ongoing mentorship and support
Applications open soon Questions? Get in Touch

Mission: GovTech should devlier on the values of who it serves

When it comes to the public sector, great software is also good software: tools that reflect our city's commitments to inclusion, quality-of-life, openness, and efficiency. Successful applicants will meet the following criteria:

For (All) the People

Governmonets don't have the luxury of catering to one demographic; our technology over time must work for any affected resident, no matter ethnicity, access to technology, gender, etc. Government technology must have a bias towards all.

Solves real problems, for real people

No need for tech for tech’s sake; we recognize technologies fundamental role in governance. Good government software should and must do the same, putting people, and their problem’s first.

Default to open

Any technology put in place will generate massive quantities of data, and governmments have a serious commitment to transparency — both for public accountability and software flexibility.

Built to scale

Cities must prioritize software-as-a-service technology that not only can solve a problem locally but also scale nationally eventually.