Document Crunch, the only document compliance platform tailored for the construction industry, has announced the successful raising of $21.5 million in Series B funding. The funding round was led by Titanium Ventures and saw participation from key strategic partner Nemetschek Group, as well as prominent construction firms such as Andres Construction and Satterfield & Pontikes. Existing investors, including Navitas Capital, Zacua Ventures, Fifth Wall, and Ironspring Ventures, also contributed. As part of this funding round, Yash Patel, General Partner at Titanium Ventures, will join the company’s Board of Directors.
“At Nemetschek, we believe in the transformative potential of AI to drive efficiencies and unlock deeper insights in the construction industry,” said Matt Wheelis, SVP, Strategy at Nemetschek.
The construction sector is a colossal $13 trillion global industry. In the U.S. alone, general contractors and subcontractors reportedly spend over $11 billion annually due to profit loss linked to risks embedded in complex contracts and project documents. Moreover, the inability of project teams to comprehend and adhere to these documents is the primary cause of construction disputes, resulting in substantial additional costs for stakeholders, including owners, lenders, engineers, and insurers. The industry allocates billions to mitigate risks but continues to incur losses because it fails to tackle the root cause: inadequate contract compliance. Document Crunch addresses this issue with its AI-powered platform designed specifically for construction, which facilitates “document compliance” by ensuring that all project participants can easily understand and adhere to their contract and project documents.
Josh Levy, CEO and Co-founder of Document Crunch, remarked, “We have made significant progress in expanding our platform to cater to the everyday needs of project teams. This momentum has clarified our vision and the industry’s needs, and we aim to delve deeper into the documents and workflows that introduce risks into our sector.”
Founded in 2019, Document Crunch began as a contract review tool for legal and risk teams to quickly identify potential risks during the pre-construction and negotiation phases. The initial product experienced rapid growth and widespread adoption among general contractors, subcontractors, and other key stakeholders. However, the company’s founding vision always included mitigating risks associated with contract administration in the field.
To further this goal, Document Crunch raised a $9 million Series A funding less than a year ago, allowing it to enhance its platform with AI-powered workflows for contract compliance. As anticipated, this new product line quickly gained traction, resulting in further expansion to support a wider array of document types. Currently, teams are utilizing Document Crunch across thousands of projects nationwide, establishing it as the only end-to-end document compliance platform in construction. However, even more developments are anticipated.
“We are excited to partner with the Document Crunch team during this next growth phase,” said Yash Patel, General Partner at Titanium Ventures and the latest addition to the Document Crunch Board. “Ensuring ongoing contract compliance is essential in the construction industry to avoid projects running over schedule and budget. Document Crunch’s innovative use of AI, extensive domain expertise, a passionate user community, and unique distribution advantage deeply impressed us. It’s rare to find thoughtful applications of AI in specialized software that have mass adoption potential.”
Additionally, Document Crunch has established a distinctive distribution advantage within the construction sector. Its initial strategic partnership and integration with Procore paved the way for investment from Trimble during its Series A and the Series B investment from Nemetschek Group, a leading global provider of software solutions for the architecture, engineering, construction, and operations (AEC/O) sectors.
“At Nemetschek, we are confident in the transformative power of AI to drive efficiencies and generate deeper insights in construction,” said Matt Wheelis. “Our investment in Document Crunch is a natural progression of our commitment to innovation. Document Crunch’s focus on contract-related AI complements our innovations in design reviews and construction drawings with Bluebeam. We look forward to collaborating with our joint customers to harness the potential of ethical AI in construction.”
In addition to its strategic partnerships, Document Crunch has garnered the loyalty of some of the largest and most recognized contractors in the industry, including Balfour Beatty, The Boldt Company, Haskell, and PCL Construction, solidifying its position as a trusted provider of contract risk review and document compliance solutions.
