Document Crunch, an Atlanta based AI-powered contract review software purpose-built for the construction technology industry, has raised $4.6m in Seed funding. Led by founders with deep expertise in construction law and risk management, the startup, Document Crunch solves massive pain points in construction: contract document review, risk mitigation, and contract compliance. Though their focus is primarily on construction contracts, their technology can spotlight risk and support decisions in a myriad of other project documents including insurance documents, drawings, specifications, and NDAs. As Document Crunch Co-Founder and CEO Josh Levy says, “Our industry’s profits suffer because of a lack of wherewithal around how to understand and manage contract risk. This exists in both the back office and at the project level. Document Crunch is raising the entire industry’s game when it comes to managing these issues. Our vision is for these solutions to be used by every person, on every project, every day. This will lead to a more equitable industry, realizing better profits and less risk.”
Document Crunch has been one of the hottest startups in this space over the last year, winning several awards including the CEMEX Ventures Construction Startup Competition hosted at BuiltWorlds’ Venture East Conference in Miami in 2021 and the IGI startup challenge in 2020. Quite suitably, their fund round was led by BuiltWorlds member Zacua Ventures, the newest entrant to the Contech VC space and joined by Fifth Wall, Argonautic Ventures, and GTM Fund. Existing investors Holt Ventures, Blue Collar Capital, and Dysruptek joined the round as well. Notably, this was Zacua’s first investment.
“Being early-stage investors, both founder quality and founder market fit is very important to us” said Vivin Hegde, the GP at Zacua Ventures who led the deal. “With Document Crunch, we thought we found the perfect founder-market fit. We have known Josh and the Document Crunch team for the past couple of years and every time we have spoken to their customers, we get the same excitement about the solution that I hear from Josh. The passion that Josh has for the business is incredible and we are super excited to work with him and the Document Crunch team.”
“We invested in Document Crunch because we see a massive amount of potential in OCR/IDP solutions and believe that sector-focused solutions are the right approach for the Built World,” added Sarah Liu, a Partner at Fifth Wall. “We were impressed by Document Crunch’s early traction, a sign that they’re addressing a true pain point, and believe their solution is highly complementary to many other software offerings in this space.”
Cutler Knupp, the Director of Strategy and Technology Investment at Haskell’s venture investment arm Dysruptek, also weighed in: “Document Crunch is showing substantial improvements in speed and accuracy for contract review. Josh has shown great ability to focus on addressing core market challenges, while moving quickly and building a quality team to execute. I believe Document Crunch has cracked the code for helping do more with less – critical for our industry. Thrilled to continue our support as a repeat investor in this most recent funding as well as continuing to scale the solution internally at Haskell.”
Document Crunch was founded in 2019 by Josh Levy, Adam Handfinger and Adam Nadler, and has rapidly expanded their presence in the last couple of years. They have scaled over the last year despite impacts of the pandemic, growing the team from 0 to 10, launching a new version of their product, and seeing revenues increase approximately 500%. Their customer base is composed of both general contractors and subcontractors, including ENR top contractors like Balfour Beatty, BOND, and Hoar Construction. While their traction continues to grow across the mid-market, they have also seen significant interest from the surety and insurance markets in the past several months. The company plans to use the fresh round of funding to scale operations and expand its team with a particular focus on engineering and product. Document Crunch expects its head count to reach 20–25 over the next several months. The next year looks to be a big year for Document Crunch with all the exciting product developments that they have lined up. We look forward to more exciting news from them!
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