Parspec is a San Mateo, California-based startup modernizing the construction products supply chain with AI. Founded in 2021 by Forest Flager and Pratyush Havelia, the company targets a deeply analog corner of the built world: the wholesale distributors and manufacturer's sales agents who source, quote, and supply the products that go into commercial construction projects, particularly in the mechanical, electrical, and plumbing (MEP) trades.
The procurement workflow in construction is notoriously manual. When a distributor receives a bid package, staff must comb through specifications, identify compliant products, gather pricing, prepare quotes, and assemble submittal documents, a process that can take days and is riddled with opportunities for error. Parspec's AI-native platform automates these steps, helping distributors and sales agents select the right products, generate quotes quickly, and produce submittals with far less manual effort.
By compressing this workflow, Parspec lets distributors bid on more jobs, increase revenue, and reduce their cost of sales. The platform effectively acts as an AI co-pilot for the construction supply chain's commercial teams, turning unstructured specifications and product catalogs into actionable, automated quoting and procurement workflows. This positions Parspec at the intersection of procurement, construction technology, and supply chain automation.
Parspec raised a $20 million Series A led by Threshold Ventures (formerly DFJ), with participation from existing investors Innovation Endeavors, Building Ventures, Heartland Ventures, and Hometeam Ventures. The round brought the company's total funding to $31.5 million. As construction firms and distributors face margin pressure and labor shortages, Parspec is betting that AI-driven automation of product selection and quoting can become essential infrastructure for the building products supply chain.