The engineer who built web crawlers in an academic lab - and accidentally designed the future of construction supply chains.
Forest Flager is the CEO and co-founder of Parspec, an AI-native platform that automates product selection, quoting, and submittal generation for MEP distributors. The company has raised $31.5M, counts four of the five largest U.S. electrical distributors among its customers, and grew revenue 4x in 12 months.
The thing about construction submittals is that nobody - and I mean nobody - wants to do them. A submittal package is the bundle of product data sheets, specifications, and compliance documentation that contractors send to engineers before installation. It is the bureaucratic bedrock of every commercial construction project. And for decades, a skilled MEP distributor would spend days assembling them by hand.
Forest Flager knew this not because he read it in a market report. He knew it because he spent years living inside the machinery of the construction industry - first as a structural engineer at Ove Arup in London, then as a researcher at Stanford, then as the Director of Software and Design Automation at Katerra, the SoftBank-backed off-site construction unicorn that burned bright and collapsed spectacularly in 2021.
But before any of that - the funding rounds, the industry-changing software, the customers representing $70 billion in global annual sales - there was a research project at Stanford that got out of hand in the best possible way.
That moment of recognition - that the industry's pain point was exactly the problem they had already automated in a research context - became Parspec. Forest and Pratyush co-founded the company in 2021, immediately after Forest left Katerra. They launched with a focused wedge: submittal automation for lighting and electrical products.
The logic was clean. MEP distributors and sales agents were spending 55-80% of their submittal work time on manual search and documentation. Parspec's software could extract products from drawings and specifications, match them against a database of over 6 million products scraped from 4,000+ manufacturer websites, and generate compliant submittal packages in minutes instead of days.
"The technology used by the sell side of the industry has been relatively the same for a few decades now - but this submittal workflow is highly specialized. There is a ton of nuance to it."
- Forest Flager, Parspec Origin StoryThe nuance comment is important. Parspec isn't just OCR and search. It is a system that understands specification compliance - whether a proposed product actually meets the electrical, mechanical, or environmental requirements of a given spec. That's a hard problem. It requires both deep product data and domain-specific AI trained on construction procurement workflows.
Forest's background gave him unusual leverage here. His PhD at Stanford was in computational design optimization. His postdoctoral work focused on building envelope design and structural optimization. His time at Katerra put him inside one of the most ambitious attempts to digitize construction - and gave him a clear-eyed view of why many attempts fail. The two groups that rarely overlap in construction technology, he has noted, are software engineers and domain specialists who actually understand how products move through the supply chain. Parspec is his attempt to bridge that gap.
In March 2022, Innovation Endeavors led an $11.5M seed round. By July 2025, Threshold Ventures (formerly DFJ) led a $20M Series A at 3x the seed valuation. The announcement revealed a company with four of the five largest U.S. electrical distributors as customers - a customer base that represents $70 billion in combined global annual sales. Revenue had grown 4x in the previous 12 months.
The construction industry accounts for over 13% of global GDP. Yet its procurement workflows remained largely unchanged for decades - manual searches, PDF spec sheets, phone calls to distributors. Parspec's AI platform is changing the math.
"With this new funding, and in close collaboration with our existing customers, Parspec plans to expand our platform to support the full order lifecycle."
- Forest Flager, Series A announcement, July 2025The trajectory reads like a deliberate puzzle. Stanford for civil engineering. Harvard's Graduate School of Design for digital media. MIT for structural engineering. Back to Stanford for a PhD in computational design optimization. The connecting thread, across all of it, is the same question Forest has chased his entire career: how do you use computation to help humans make better decisions about how buildings are designed and built?
His 2003 SOM Foundation Structural Engineering Traveling Fellowship took him to Japan to examine sustainable development approaches - comparing traditional Japanese construction using renewable materials against Western design philosophy emphasizing structural robustness. The fellowship gave him an early lens on the relationship between material information and design outcomes.
That lens became a research career. His postdoctoral work at Stanford (2013-2017) focused on structural optimization of steel truss structures, building envelope design optimization, and multidisciplinary design optimization. He published extensively, built tools, and taught. Then Katerra recruited him as Director of Software and Design Automation in 2017.
Katerra was the SoftBank moonshot attempt to vertically integrate construction - controlling everything from design software to material supply to on-site assembly. Forest led the software team. When Katerra collapsed in 2021 after burning through over $2 billion, he had a sharper view than almost anyone of what the construction industry's real data problems were. Not design. Procurement.
2003 Structural Engineering Traveling Fellowship. Examined contrasting approaches to sustainable development: Japanese structures using simple techniques with renewable materials versus Western designs emphasizing robust structural design.
Not everyone who worked at Katerra came out with a company. Forest did. The lesson he extracted from the collapse was specific: the construction industry's information problem is not a design problem. It is a procurement problem. Product data - specifications, pricing, availability, compliance - is fragmented across thousands of manufacturer websites, inconsistently formatted, manually maintained, and fundamentally unreliable at the moment it's needed most: during the bid.
Katerra had tried to solve construction by controlling the physical supply chain. Forest's instinct at Parspec was different: solve the data layer first. If you can reliably know what products are available, what they cost, what specs they meet, and what alternatives exist - then the workflow automation follows naturally.
This is why Parspec spent years building a product database before anyone was talking about AI in construction procurement. The 6 million products currently in Parspec's catalog didn't appear overnight. They were scraped, normalized, and maintained through a system of web crawlers and machine learning pipelines - the same basic approach Forest and Pratyush were using for academic research a decade earlier.
The insight that construction technology and domain expertise "rarely overlap" in the industry is the core of Parspec's competitive moat. Forest has both. His academic background gave him the computational fluency. His time at Arup and Katerra gave him the product knowledge. Co-founder Pratyush Havelia brings the data engineering depth. The combination is genuinely rare in the space.
Parspec's customer list - four of the five largest U.S. electrical distributors, collectively handling $70 billion in global annual sales - is the market's verdict on that combination. These are not venture-capital-friendly pilots. These are production deployments at companies that have been in business for decades and are notoriously slow to adopt new software.
The Series A announcement in July 2025 came with a product roadmap that signals where Forest is taking Parspec. The company is building beyond submittal automation into a full Distributor Order Management System - covering the complete arc from quote generation to order fulfillment. A Contractor Portal is also in development, aimed at giving contractors real-time visibility into project documents, delivery status, and communication with suppliers.
The $1.7 trillion global construction materials procurement market is the ceiling. Parspec is currently focused on the MEP distribution channel in the U.S. - a beachhead that happens to be one of the most complex and data-intensive segments of the market. Winning there, with the kind of customer retention that produces 4x revenue growth, creates a replicable playbook for adjacent segments: HVAC, plumbing, fire protection, and eventually international markets.