Parspec Raises $20M Series A Funding for AI-Based Construction Supply Chain Efficiency

Parspec, a startup leveraging artificial intelligence to enhance efficiency in the construction industry supply chain, has secured $20 million in a Series A funding round. The company's main objective is to aid sales agents and wholesale distributors in efficiently bidding and supplying construction products. According to CEO and co-founder Forest Flager, Parspec's AI-powered capability to swiftly identify products available in the market that meet complex customer specifications sets it apart.

The startup initially focused on lighting and electrical products, later expanding to support mechanical, electrical, and plumbing (MEP) products. Threshold Ventures led the Series A financing, with existing backers such as Innovation Endeavors, Building Ventures, Heartland Ventures, and Hometeam Ventures also participating. This funding brings Parspec's total raised capital to $31.5 million. Despite not disclosing its valuation, the company revealed a significant increase from its seed raise in March 2022.

The real estate-related startup sector in the U.S. has seen a decline in venture funding, with a notable decrease in 2024. Parspec was founded in 2020, gaining traction in 2021, and has experienced substantial revenue growth over the past year. Currently, the company serves 288 customers, mainly wholesale distributors and sales agencies in the MEP product verticals, operating on a usage-based subscription revenue model. Threshold Ventures partner Mo Islam praised Parspec's AI-native product and its potential to automate the procurement process, offering a competitive advantage in the construction industry.