Parspec Raises $20 Million in Series A

Parspec Raises $20 Million in Series A

Parspec, a San Mateo, CA-based AI-native software platform for the construction supply chain, has raised $20 million in Series A funding, bringing its total funding to $31 million.

The round was led by Threshold Ventures, with participation from Innovation Endeavors, Building Ventures, Heartland Ventures, and Hometeam Ventures.

Threshold Ventures is an early-stage venture capital firm focused on Series A and B investments in transformative startups. It targets sectors such as enterprise software, AI, healthcare, and developer tools.

The company will use the funding to expand its platform to support the full order lifecycle, accelerate product development, and introduce new tools for distributors and contractors.

Founded in 2021 by Forest Flager and Pratyush Havelia, Parspec is a technology company focused on streamlining the business-to-business procurement process for construction materials, starting with mechanical, electrical, and plumbing (MEP) products. Its AI-powered platform support product selection, quoting, and submittals. By leveraging multimodal AI models and a proprietary data pipeline, Parspec automates the complex process of matching design specifications to compliant products. Headquartered in San Mateo, California, Parspec's existing customers include Rexel, Border States, U.S. Electrical Services, and Crescent Electric Supply.

Funding Details

Company: Parspec

Raised: $20.0M

Round: Series A

Funding Date: July 2025

Lead Investor: Threshold Ventures

Additional Investors: Innovation Endeavors, Building Ventures, Heartland Ventures, Hometeam Ventures

Company Website: https://www.parspec.io/

Software Category: Construction Tech / AI for Procurement / Supply Chain Software