AI-native startup Parspec has secured $20 million in Series A funding to accelerate the digital transformation of the construction supply chain. The round, led by Threshold Ventures with participation from Innovation Endeavors and others, will enable Parspec to expand its platform capabilities and support a more connected and efficient materials procurement process across the $16 trillion global construction industry.
Parspec raises $20M Series A led by Threshold Ventures to expand AI-based construction procurement.
Platform improves quote and submittal workflows, delivering 50–100% labor productivity gains.
Uses multimodal AI to extract data from specs and match with 6M+ products.
Revenue grew 4x in the past year; now supports hundreds of distributors, including Graybar and Rexel.
Funds will go toward Distributor Order Management and a new Contractor Portal.
Commercial rollout of new products expected by the end of 2025.
Founded in 2021, Parspec has built a purpose-built AI platform for streamlining the historically fragmented construction product supply chain. The platform targets procurement inefficiencies in quoting, submittals, and specification matching—offering distributors and sales agents a way to deliver accurate, timely bids and improve compliance across projects.
"With Parspec, we've significantly reduced quote and submittal turnaround times," said Rama Theekshidar, Chief Digital Officer at U.S. Electrical Services Inc. "This efficiency empowers our team to pursue and win more projects—fueling profitable growth across the business."
Parspec's core differentiator is its AI-powered data pipeline. The platform uses multimodal AI models to extract product specifications from design documents and drawings. It then cross-references this data against a catalog of over 6 million products, surfacing a ranked list of compliant items. The catalog is dynamically updated using Parspec’s automated web-scraping infrastructure, ensuring real-time product accuracy.
"Parspec is tackling one of the largest opportunities in the construction industry," said Mo Islam, Partner at Threshold Ventures. "Their AI-native platform is unlocking massive value by automating materials procurement at scale."
The company reports 4x revenue growth over the past year, now supporting hundreds of distributors and sales agents, including four of the five largest U.S. electrical distributors, who collectively represent $70B in global sales.
"Incorporating Parspec into Graybar's service stack has significantly improved how we quote and bid on projects," said Danna Stone, SVP of Marketing at Graybar.
Parspec initially focused on lighting and electrical products but has since expanded to mechanical, electrical, and plumbing (MEP) categories—representing one-quarter of U.S. construction material spend.
With its new funding, Parspec plans to invest heavily in two strategic product areas:
Distributor Order Management: A complete solution for managing the quote, submittal, and fulfillment lifecycle.
Contractor Portal: A real-time digital hub for contractors to view project documents, track orders, and communicate with partners.
Pilot projects are already underway, with a full commercial rollout expected by end of 2025.
"Adding a contractor portal will be a total game changer," said Jennifer Cianciarulo, VP of Customer Experience at Crescent Electric Supply. "We’re honored to help shape the next chapter of innovation through Parspec’s steering committee."
Parspec is a technology company that is focused on streamlining the business-to-business procurement process for construction materials, starting with mechanical, electrical and plumbing products. Founded in 2021 by Forest Flager and Pratyush Havelia and headquartered in San Mateo, California, Parspec's AI-native software platform empowers distributors and sales agents to bid more jobs, increase revenue, and reduce cost of sales with advanced tools for product selection, quoting, and submittal preparation. Parspec has raised $31 million dollars to date from leading deep tech and construction technology venture investors.
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