Parspec, a San Mateo–based startup leveraging AI to streamline the rapidly evolving construction procurement process, has closed a $20 million Series A funding round led by Threshold Ventures with participation from Innovation Endeavors, Building Ventures, Heartland Ventures and Hometeam Ventures.
Founded in 2020 by Forest Flager and Pratyush Havelia and operational since 2021, Parspec initially focused on lighting and electrical products. It has since expanded to support mechanical, electrical and plumbing (MEP) categories. The company’s AI-driven solution uses machine learning to extract requirements from unstructured drawings and crawls around 4,000 manufacturer websites to build a spec-compliant product catalog.
Parspec reports that its platform cuts bid preparation time and costs by half while improving compliance, enabling contractors and distributors to pursue more projects. Since launching its quoting tool in January 2024, the company has achieved fourfold revenue growth and serves nearly 300 customers, including major electrical distributors and lighting agencies in the US.
Amid a 40% rise in construction material prices since 2020, Parspec’s usage-based subscription model—charging per generated document, such as quotes and submittals—aligns customer expenses with delivered value. This funding round underscores investor confidence in digital solutions aimed at optimizing the trillion-dollar global construction industry’s supply chain.
