AI-driven technology platform Parspec announced it raised $20 million in Series A funding to expand product development and order management.

Parspec said it raised new funding in a round led by Threshold Ventures, with participation from existing investors including Innovation Endeavors, Building Ventures, Heartland Ventures and Hometeam Ventures.

According to Parspec, the global construction industry was valued at $16 trillion in 2024, with over $5 trillion tied to the materials supply chain. Despite this scale, procurement in the sector often relies on manual processes like email and phone, which Parspec says are inefficient and contribute to labor costs nearly double those in industries like auto parts and electronics.

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Parspec says its platform can match complex customer specifications to available products using multimodal AI models that extract requirements from design documents. It then ranks the relevant options from a database of over six million products. To keep the catalog accurate, Parspec has built an automated system that collects and organizes data from thousands of manufacturer websites daily.

According to the technology platform, it will use most of the Series A funding to expand product development in two key areas:

• Distributor Order Management: A tool to support the full project order lifecycle, including quoting, submittals and fulfillment.
• Contractor Portal: A platform giving material buyers access to project documents, order status, delivery tracking and communication tools.

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Parspec said these features are being developed in collaboration with current customers such as Rexel, Border States, U.S. Electrical Services and Crescent Electrical Supply.

“We’re excited to partner with Threshold to accelerate our mission to enable a more connected and efficient construction supply chain,” Parspec Co-Founder and CEO Forest Flager said in a July 8 news release. “With this new funding, and in close collaboration with our existing customers, Parspec plans to expand our platform to support the full order lifecycle and to create a unified digital environment for collaboration between contractors, distributors, sales agents and manufacturers.”