The world doesn’t need another half-baked SaaS startup telling you they’re “AI-powered.” What it needs is Parspec, a company that actually puts artificial intelligence to work where it matters: in the gritty, error-prone trenches of construction procurement, where time kills deals and bad data burns billions.
Born from deep research at Stanford and forged in the pressure cooker of real-world complexity, Parspec is what happens when two Ph.D.s, Forest Flager and Pratyush Havelia, ditch the academic podium and go full metal with machine learning. Forest, a design automation veteran from Katerra and a postdoc at Stanford’s CIFE, knew the game was broken. Pratyush, a computer vision specialist with a Stanford Ph.D. and a data mind sharp enough to slice through the noise, built the backbone. Together, they built Parspec into a full-stack AI-native platform that doesn’t just help you find construction products, it helps you own the entire quoting, submittal, and fulfillment cycle.
This week, Parspec locked in a $20M Series A round, led by Threshold Ventures and backed by returning believers Innovation Endeavors, Building Ventures, Heartland Ventures, and Hometeam Ventures. That brings their total to $31.5M and puts more fuel into a platform already punching above its weight.
And let’s talk results. Parspec isn’t preaching potential, they’re delivering performance. Customers are reporting 4× year-over-year growth, 50–100% boosts in labor productivity, and submittals done in minutes instead of days. When Rexel USA, a $70B distributor, starts quoting 7.5% more jobs thanks to your software, you’re not an app, you’re infrastructure.
Under the hood? AI that eats specs for breakfast. Proprietary crawlers digest product data from thousands of manufacturers daily. Six million SKUs. Multimodal models that extract, rank, and recommend without blinking. A cloud native architecture built on AWS, Python, React, and PostgreSQL, tuned for the fast lane. SOC2 Type II readiness? Of course. ERP and CRM integrations? Already shipping. A Contractor Portal? Dropping Q4 2025, with predictive analytics on deck for 2026.
This isn’t a pitch. This is a signal. The $5T construction materials supply chain is a lumbering beast, and Parspec is wiring it for speed. With offices in San Mateo and Bangalore, 200+ customers live, and four of the five largest U.S. electrical distributors already onboard, Parspec isn’t scaling, they’re compounding.
So, to Forest Flager, Pratyush Havelia, and the Parspec crew: this isn’t a milestone, it’s ignition. Respect to Mo Islam, Josh Rapperport, and Allen Preger for keeping the conviction high. The industry’s been quoting by candlelight for too long. Now it’s running on Parspec.
