Twin founders raise $7 million Seed round to bring AI to construction planning
Materialspace targets one of construction’s most manual bottlenecks, as labor shortages and project complexity strain traditional workflows.
Materialspace, an artificial intelligence startup founded by twin brothers Yoash and Nadav Palmor, has raised $7 million in Seed funding to automate the planning, pricing, and execution of interior spaces in large construction projects. The round was co-led by StageOne Ventures, SecretChord, and Timber Grove Ventures, with participation from Maccabee Ventures and GC Ventures.
Yoash, the CEO, previously ran a consulting firm serving manufacturers, contractors, and distributors, working with more than 100 companies similar to Materialspace’s current customers. Nadav, the company’s chief product officer, has held senior roles at AI and data startups including Oolo AI, which was acquired by Appsflyer, and Agora.
The company is addressing a segment of the construction industry that has been slow to digitize. Planning and procurement for interior construction, particularly in large residential and commercial projects, remain heavily dependent on a patchwork of legacy software, spreadsheets, and manual data handling. These fragmented workflows create delays and inefficiencies that are becoming increasingly difficult to sustain amid a global shortage of skilled labor.
Materialspace aims to replace that fragmentation with a single AI-powered platform. Its software analyzes blueprints, product catalogs, and pricing data, structuring and optimizing information so teams can move from cost estimation to design and ordering within one continuous system.
Since launching its product less than a year ago, the company says it has seen rapid adoption and expansion, driven primarily by distributors and manufacturers seeking to scale operations without increasing headcount or eroding margins.
“Many AI companies are trying to optimize broken workflows,” said Yoash Palmor, Materialspace’s co-founder and CEO. “We’re starting from a different, more ambitious premise: that all of our customers’ critical business workflows should be one continuous, intelligent process. AI finally makes it possible, and once it is done, the economics of the businesses we work with fundamentally change.”
