FOREST FLAGER CEO & CO-FOUNDER, PARSPEC $31.5M RAISED SERIES A LED BY THRESHOLD VENTURES 4X REVENUE GROWTH IN 12 MONTHS 6 MILLION PRODUCTS CATALOGUED STANFORD PhD HARVARD MDesS MIT MEng FORMER KATERRA DIRECTOR AI FOR CONSTRUCTION PROCUREMENT SOM FOUNDATION FELLOW FOREST FLAGER CEO & CO-FOUNDER, PARSPEC $31.5M RAISED SERIES A LED BY THRESHOLD VENTURES 4X REVENUE GROWTH IN 12 MONTHS 6 MILLION PRODUCTS CATALOGUED STANFORD PhD HARVARD MDesS MIT MEng FORMER KATERRA DIRECTOR AI FOR CONSTRUCTION PROCUREMENT SOM FOUNDATION FELLOW
Profile
Construction AI - Stanford - Series A

Forest
Flager

The engineer who built web crawlers in an academic lab - and accidentally designed the future of construction supply chains.

CEO & Co-Founder, Parspec

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.

$31.5M
Total Raised
4x
Revenue Growth
6M+
Products in DB
80%
Time Saved
Forest Flager, CEO and Co-Founder of Parspec
Forest Flager
$20M
Series A (2025)
4/5
Top US Electrical Distributors
$70B
Customer Global Sales
3x
Valuation Growth at Series A

The Web Crawler That Became a $31.5M Company

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.

While pursuing doctoral research, Forest and co-founder Pratyush Havelia built web crawlers to automatically collect product specifications, EPD data, and pricing information for a building design optimization model. They weren't building a startup. They were trying to solve an academic problem. Then they looked up and realized the entire construction industry was doing what their crawler did - manually, every day.
Parspec Origin Story

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 Story

The 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.

CEO Co-Founder Construction AI Series A Stanford PhD MEP Supply Chain SaaS

Parspec by the Numbers

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.

Submittal time saved55-80%
Quote time reduction~50%
Labor productivity improvement (reported)50-100%
Revenue growth (12 months)4x

"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 2025
Parspec Platform
Product Selection AI
Extracts products from drawings and specs, matches against 6M+ product database
Submittal Automation
Generates compliant submittal packages with markup, annotation, and custom branding
Quoting & Bid Management
Instant quotes, pricing history, alternates matching, automated markup
O&M Document Automation
Automated operation and maintenance package generation post-project
Coming 2025
Distributor Order Management System (end-to-end quote to fulfillment) + Contractor Portal for real-time project communication and delivery tracking.

Three Elite Universities. One Thread.

The 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.

Stanford
B.S. Civil Engineering
1996-2000
Harvard GSD
MDesS - Digital Media
2001-2002
MIT
MEng - Structural Engineering
2002-2003
Stanford
PhD - Computational Design Optimization
2006-2012
SOM Foundation Fellow

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.

From Arup London to a $31.5M AI Startup

1996-2003
Stanford B.S., Harvard MDesS, MIT MEng - three degrees in seven years spanning engineering and design computation
2003
SOM Foundation Structural Engineering Traveling Fellowship - studies sustainable construction in Japan vs. Western approaches
2003-2006
Structural engineer at Ove Arup & Partners, London and San Francisco - sports venue design and complex structures
2006-2012
PhD at Stanford in computational design optimization - publishes on structural optimization, building envelope design, multidisciplinary optimization
2013-2017
Postdoctoral Research Associate and Lecturer at Stanford - develops computational methods for large design space exploration
2017-2021
Director of Software and Design Automation at Katerra (SoftBank-backed) - leads software team at $2B+ off-site construction company
2021
Co-founds Parspec with Pratyush Havelia - launching AI-native submittal automation for construction supply chain
March 2022
Parspec raises $11.5M seed round led by Innovation Endeavors - validates product-market fit in MEP distribution
2024
4x revenue growth in 12 months; database surpasses 6 million products from 4,000+ manufacturer sites
July 2025
Parspec raises $20M Series A at 3x seed valuation, led by Threshold Ventures - announces order management system expansion

What Katerra Taught Him

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.

Building optimization algorithms were only as good as the information you feed in. Forest and Pratyush discovered that the construction supply chain was performing manually - every day, across the entire industry - exactly what their research crawler was doing automatically.
Parspec Origins

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.

From Submittals to the Full Order Lifecycle

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.

Now
MEP Distributor Platform
Submittal automation, quoting, product selection, O&M packages. Four of the five largest U.S. electrical distributors live on the platform.
2025
Order Management + Contractor Portal
End-to-end quote-to-fulfillment system. Real-time project documents, delivery tracking, and distributor-contractor communication.
Long Term
$1.7T Procurement Market
Adjacent segments (HVAC, plumbing, fire), international expansion, and the full digitization of construction materials procurement.

Six Things Worth Knowing

3
Elite universities - Stanford (BS + PhD), Harvard (MDesS), and MIT (MEng) - in one career, all pointing at the same question: how do you use math to make buildings better and cheaper?
6M+
Products in Parspec's database, scraped from 4,000+ manufacturer websites. The database started as a research crawler built for a Stanford academic project.
$70B
Combined global annual sales of Parspec's electrical distributor customers. Four of the five largest U.S. electrical distributors are on the platform.
2003
SOM Foundation Traveling Fellowship year, which took Forest to Japan to study the contrast between traditional timber construction and Western structural design. A thread he's pulled ever since.
4x
Revenue growth in 12 months, reported at the Series A announcement. The kind of growth that makes a 3x valuation step-up look conservative in retrospect.
80%
Time savings on submittal creation for Parspec customers. Work that took days now takes minutes. The math is not subtle.

Forest Flager in His Own Words

Links & Profiles

Latest
July 2025
$20M Series A
Threshold Ventures leads Parspec's Series A at 3x seed valuation. Innovation Endeavors, Building Ventures, Heartland Ventures, and Hometeam Ventures participate.
July 2025
Project Portals Launch
Parspec expands with contractor-facing Project Portals and new distributor partnerships, extending beyond submittal automation.
May 2025
Future Forum 2025
Featured speaker at Future Forum 2025 discussing how AI is reshaping organizations and the construction supply chain.
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