AI-powered document and contract fulfillment technology platform Document Crunch announced on Oct. 9 that it had raised $21.5 million in a Series B funding round led by Titanium Ventures.
The round includes participation from strategic partner Nemetschek Group, along with major contractors such as Andres Construction and Satterfield & Pontikes, existing investors such as Navitas Capital, Zacua Ventures, Fifth Wall and Ironspring Ventures. Document Crunch will also bring Yash Patel, general partner at Titanium Ventures, as a new member to its board of directors.
“We’ve made great strides expanding our platform to support the day-to-day needs of project teams,” says Josh Levy, CEO and co-founder of Document Crunch. “All of this momentum has clarified our vision and what the industry needs from us, and we intend to dig much deeper into all the documents and project team workflows that cause risk to our industry “.
Document Crunch raised $9 million in Series A funding less than a year ago.
Launched in 2019, Document Crunch began as a contract review product for back-office risk and legal teams to identify risks during pre-construction and negotiation. Its first contract review product saw growth and adoption among general contractors, subcontractors and other construction stakeholders.
Using construction contract-specific LLMs and generative AI using frontier models from OpenAI and Anthropic, the machine learning algorithm has a retrieval architecture designed to provide answers to complex contractor questions about documents. It also has a chat function to allow users to ask questions directly. The Construction Contract Checklist and Project Playbook, specific tools for site personnel such as foremen, project managers and project engineers, were launched in July.
But co-founders Levy, who was a contract review specialist for contractor JE Dunn and engineer Wood before founding Document Crunch, and COO Trent Miskelly, formerly a founding executive at Assemble Systems and JBKnowldege, always had as an objective to reduce the risk of contract administration. both in the field and in the early stages.
“What was most interesting to us, though, was their recent product on automated review, Project Playbook, which is primarily used by non-legal people,” says Titanium’s Patel. “These are project managers and engineers, and in our customer due diligence we found that the early adopters were the legal staff who have some of the biggest GCs out there, but some of the biggest drivers of using their software, when we looked at everything from weekly active users to monthly active users, the ratios that we typically look at in all kinds of software companies, all the end users that were driving those high ratios were actually project managers and engineers. real endings.”
Levy says developing products to help clients deal with the risk picture at any stage of a project is what Document Crunch will focus on with this new round of funding. He also says that adding an investor like Titanium, which invests in technologies beyond construction, was something Document Crunch wanted to do to expand its offering. Patel says he sees owner, underwriter and bond opportunities for Document Crunch.
“We see all kinds of situations that arise beyond these kind of basic, templated contracts that some people tend to work with,” says Patel. “Usually it’s the owners who end up adding subtle nuances and the terms that a lot of these GCs, unless they have the right legal staff on board and only the bigger ones, the vast majority need to have a tool and AI is a great way to provide it and democratize it for the masses.”
Both Levy and Patel say they were looking forward to expanding the platform, and Levy announced more hires shortly after the funding announcement was made.
“This growth capital is our commitment to the construction industry that we aim to de-risk every project in our $13 trillion ecosystem.” says Levy.
