Last year, 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. At the time, they had achieved an initial product-market fit with a solution that automated the generation of submittals and operations and maintenance manuals for electrical lighting suppliers.
What impressed us about this team was the confidence and certainty that Forest and Pratyush had in what they would achieve with this seed funding in hand: They would add two new pillars to the solution, an AI-powered Product Finder and a Quoting solution. Collectively, these new products would enable suppliers to instantly identify spec-compliant products from the universe of options and generate a bill of materials, submittal package and a quote. And it would do so in a fraction of the time—minutes versus hours—enabling sales agents to bid and win more jobs, and to do so more profitably. Forest and Pratyush estimated these new capabilities would enable Parspec to grow revenue roughly 3x by the end of last year.
Fast forward a year, and Parspec has achieved all it had set out to do, and then some. Now, Parspec supports hundreds of lighting and electrical distributors, sales agents, and manufacturers—including four of the five largest distributors in the U.S., representing $70 billion in global annual sales. The team outpaced their aggressive goals, growing revenue 4x in just 12 months and significantly expanding the platform’s capabilities. Parspec now supports sales agents across mechanical, electrical and plumbing (MEP) product categories, which combined represent 25% of the construction materials spend.
For all of these reasons, we were thrilled to invest again in Parspec’s latest funding round, a $20 million Series A led by Threshold Ventures with ongoing participation from Innovation Endeavors and others. And as with the previous seed round, Forest, Pratyush and their growing team have clear and aggressive objectives for the use of this injection of capital. In addition to executing the expansion to mechanical and plumbing, they plan to release an order management and contractor portal later this year, critical steps forward in building the connected supply chain for construction. A lofty goal yes—but also the type of goal this team was built to achieve.
Learn more about Parspec here.
