Parspec is an AI-driven software platform that helps wholesale distributors and sales agents efficiently bid on and supply construction products. The company recently raised $20 million in Series A funding, led by Threshold Ventures, with participation from Innovation Endeavors, Building Ventures, Heartland Ventures, and Hometeam Ventures.
Many in the construction industry still rely on outdated procurement processes, which are time-consuming and result in higher labor costs, nearly twice as much as those in industries such as auto parts and electronics. Parspec improves labor productivity by 50-100% while enhancing bid quality and compliance.
A standout feature of Parspec is its ability to quickly identify products that meet complex specifications using advanced AI models. The platform extracts requirements from design documents and provides a ranked list of compliant products from a database of over 6 million items, maintained through an automated data pipeline.
Over the past year, Parspec has achieved 4 times revenue growth, supporting hundreds of distributors, including four of the five largest electrical distributors in the U.S., with a collective annual sales of $70 billion. Founded in 2021, Parspec initially focused on lighting and electrical products but has since expanded to include mechanical, electrical, and plumbing (MEP) products, which represent about one-quarter of U.S. construction material spending.
How the funding will be used: Parspec plans to invest the majority of their Series A capital into product development, focused in two main areas: distributor order management and a
contractor portal.
These new products are being developed in close collaboration with Parspec’s existing customers, including Rexel, Border States, U.S. Electrical Services, and Crescent Electrical Supply.
KEY QUOTES:
“With Parspec, we’ve been able to significantly reduce quote and submittal turnaround times. This efficiency empowers our team to pursue and win more projects—fueling profitable growth across the business. The team at Parspec are true thought leaders, consistently pushing the boundaries of what’s possible in our industry, and we are proud to partner with them.”
Rama Theekshidar, Chief Digital Officer at U.S. Electrical Services
“Forest, Pratyush and the Parspec team are tackling one of the largest opportunities in the construction industry. They have developed an AI-native product to automate construction materials procurement, unlocking massive value for their customers.”
Mo Islam, Partner at Threshold Ventures
“We’re excited to partner with Threshold to accelerate our mission to enable a more connected and efficient construction supply chain. 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.”
Forest Flager, Cofounder and CEO of Parspec
“Incorporating the Parspec platform into Graybar’s industry-leading service capabilities has significantly improved how we quote and bid on projects, enhancing our overall customer experience. We look forward to working with Parspec to transform the supply chain.”
Danna Stone, Senior Vice President, Marketing at Graybar
“Parspec is transforming the way we deliver value to our customers. From lightning-fast quote turnarounds to professional, timely submittal packages, the time savings have been a true differentiator. Adding a contractor portal to the Parspec platform will be a total game changer, enhancing the overall customer experience and unlocking new levels of efficiency. We’re honored to join Parspec’s steering committee and help shape the next chapter of innovation.”
Jennifer Cianciarulo, Vice President Customer Experience at Crescent Electric Supply
