A year ago, we announced our initial investment in Parspec to support co-founders Forest Flager (CEO) and Pratyush Havelia (CTO) on their mission to transform the $1.7 Trillion dollar construction materials procurement market. At that time, Forest and Pratyush were relatively early in this journey, having achieved early product-market fit with a solution that automated the generation of submittals and O&M’s for electrical lighting suppliers.
But what was most impressive about this team was the confidence and certainty they had about what they would achieve next with this funding in hand: They would add two new pillars to the solution, an AI-powered Product Finder and a Quoting solution. Collectively, these two new products would enable suppliers to instantly identify spec-compliant products from the universe of options, assemble a bill of materials and generate a bid. And it would do so in a fraction of the time—minutes versus hours—enabling these sales agents to bid and win more jobs, and to do so more profitably. Additionally, Forest and Pratyush estimated that they would grow revenue roughly 3x by winning the nation’s five largest electrical distributors as customers. All by the end of 2024.
Fast forward a year, and Parspec has achieved all it had set out to do, and then some. The team successfully launched Product Finder and Quoting in Q1 of 2024 and by Q4, they were at various stages of progress towards enterprise agreements with the nation’s five largest electrical distributors. And they had added electrical power, controls, and switch gear to the platform, with plans underway to add plumbing and other product categories to the platform in the near future.
For all of these reasons, we were thrilled to invest again in Parspec’s latest funding round at the end of 2024, a $20 million Series A led by Threshold Ventures with ongoing participation from Innovation Endeavors and others. With this funding, the sky is the limit. Parspec will not only grow its leadership in the electrical market but also expand into adjacent building product markets. And ultimately, this will enable architects, engineers, and contractors to directly specify and procure performance-compliant building products using Parspec. Indeed, these are lofty goals … but those are exactly the kinds of goals this team was built to achieve.
Learn more about Parspec here.
