AI startup Parspec lands $20M to transform construction procurement with spec-matching tech

San Mateo-based startup Parspec has raised $20 million in Series A funding to scale its AI-powered platform that automates product selection and procurement for the construction industry. The round, led by Threshold Ventures, brings Parspec’s total funding to $31.5 million, with participation from backers including Innovation Endeavors and Building Ventures.

Parspec uses machine learning and generative AI to parse complex specs from drawings and documents, then instantly matches them with compliant products from a catalog built by crawling 4,000+ manufacturer websites. Its platform is already being used by four of the five largest electrical distributors and three of the five top lighting agencies in the U.S.

CEO Forest Flager says the company reduces bidding time and cost by up to 50%, helping distributors win more projects while improving compliance and profit margins. With construction material prices still 40% higher than in 2020, Parspec aims to make the supply chain more agile and cost-efficient.

With 288 customers and 4x revenue growth over the past year, Parspec is gaining traction as a go-to workflow tool for MEP procurement.

Want to see how AI is reshaping construction bidding and quoting? Read the full Crunchbase News article here.