Parspec Raises $20M Series A to Automate Construction Procurement with AI

Intro

On July 8, 2025, AI-powered construction procurement startup Parspec closed a $20 million Series A round, led by Threshold Ventures, with participation from Innovation Endeavors, Building Ventures, Heartland Ventures, and Hometeam Ventures. The funding brings total capital raised to $31.5 million and reflects a 3× valuation boost since its March 2022 seed round. The proceeds will drive development of a Distributor Order Management system and a Contractor Portal, both slated to launch by end of 2025.

What the Company Does

Founded in 2021 by Forest Flager and Pratyush Havelia and based in San Mateo, CA, Parspec is building an AI-native procurement platform for MEP (mechanical, electrical, plumbing) distribution. Its technology automates the extraction of specifications from over 4,000 manufacturer websites, enabling fast product selection, quoting, and submittal generation.

Who It’s Best For

Wholesale distributors, sales agents, and contractors in MEP supply chains seeking faster bidding cycles, enhanced compliance, and reduced cost of sales.

Similar Companies

While broader construction or ERP platforms like Epicor or Procore exist, Parspec uniquely integrates AI for real-time spec matching and submittal automation, offering a distinct edge in MEP procurement workflows.

How to Get in Touch

Website: parspec.io
Media Contact: Luli Maurino – [email protected]
Headquarters: San Mateo, CA

Team / Founders

Forest Flager – Co-Founder & CEO (ex-Katerra software lead)
Pratyush Havelia – Co-Founder

The product roadmap is being shaped in collaboration with distributors such as Rexel, Border States, U.S. Electrical Services, and Crescent Electrical Supply.