America’s $1.6T development trade faces a vital infrastructure disaster: whereas housing begins reached 1.43M items in mid-2025, 77% of builders report allowing delays, with cities like San Francisco averaging 33 months simply to safe approval. This pre-construction bottleneck has compounded a 4.7M housing unit scarcity, pushing median residence costs up $88K since 2020 whereas development timelines stretch past 300 days from allow to ultimate inspection in lots of markets. PermitFlow addresses this systemic breakdown with AI brokers that automate your complete pre-construction workflow, from jurisdiction analysis by ultimate approvals, turning what sometimes takes months into days. Since launching in 2021, the platform has powered over $20B in development worth nationwide, drawing on a proprietary dataset of 12M+ municipal knowledge factors to ship 2.5X sooner allow approvals and 5X ROI for builders. With main development groups together with Lennar, Amazon, and Dick’s Sporting Items now counting on the platform to navigate 7K+ jurisdictions, PermitFlow’s strategy demonstrates how clever automation can unlock housing provide at scale the place handbook processes have failed.
AlleyWatch sat down with PermitFlow Cofounder and CEO Francis Thumpasery to be taught extra in regards to the enterprise, the corporate’s future plans, latest funding spherical that brings its whole capital raised to $90.5M, and far, rather more…
Who have been your buyers and the way a lot did you increase?
$54M Collection B led by Accel, with participation from Kleiner Perkins, Felicis, Initialized Capital, Altos Ventures, Y Combinator, and current buyers.
Inform us in regards to the services or products that PermitFlow presents.
PermitFlow presents a collection of AI brokers, together with modules for allowing, inspections, and license administration, with extra in growth to satisfy rising demand from builders nationwide.
What impressed the beginning of PermitFlow?
Samuel Lam (cofounder) and I each skilled the delays, complexity, and inefficiencies of development allowing firsthand. Working carefully with contractors, builders, and native AHJs, our workforce noticed how fragmented techniques and handbook workflows added overhead and slowed down initiatives earlier than they even started. These inefficiencies made pre-construction costlier and unpredictable, changing into a serious bottleneck to housing, infrastructure, business growth, and residential companies. PermitFlow was constructed to streamline your complete pre-construction course of, beginning with quick, easy, and predictable allowing.
How is PermitFlow completely different?
PermitFlow is the main AI firm for development as a result of we perceive the nuances of each development and expertise intricately. Our workforce combines actual world development expertise and deep technical experience to unravel advanced issues with considerate, impactful options.
What market does PermitFlow goal and the way huge is it?
PermitFlow serves the $1.6TAmerican development trade.
What’s what you are promoting mannequin?
We’re a subscription software program platform.
How are you getting ready for a possible financial slowdown?
This spherical places us in a robust place to remain targeted no matter macro situations. We’re investing in product and buyer outcomes with a disciplined plan to ensure we stay a dependable long-term companion for builders.
What was the funding course of like?
We had very sturdy demand from a number of prime tier buyers. The method was extraordinarily quick. We’re thrilled to be partnering with Accel ultimately!
What are the largest challenges that you simply confronted whereas elevating capital?
Fundraising whereas working a hyper-growth firm is all the time intense. The enterprise doesn’t pause, so balancing clients, hiring, product momentum, and the increase itself was an actual juggling act. I’m grateful for a way our workforce dealt with it.
What elements about what you are promoting led your buyers to write down the examine?
We’re lucky to work with unbelievable development corporations throughout the spectrum, and we’ve earned their belief over time by delivering actual outcomes. Buyers additionally noticed a big, sturdy market and a workforce that’s been executing shortly towards it.
What are the milestones you propose to realize within the subsequent six months?
This capital permits us to speed up product growth and develop our workforce to satisfy rising demand from builders nationwide.
What recommendation are you able to provide corporations in New York that would not have a recent injection of capital within the financial institution?
Each firm’s scenario is completely different, so I don’t wish to over-generalize. What’s been true for us is treating capital as the results of constructing a robust, enduring enterprise. We do that by staying near clients, controlling burn, and specializing in actual worth creation. When you try this constantly, fundraising turns into the byproduct.
The place do you see the corporate going now over the close to time period?
Demand from builders is stronger than ever. We plan to develop our suite of AI brokers and develop our workforce to satisfy the demand for our platform, empowering builders to speed up development initiatives from idea to actuality.
What’s your favourite winter vacation spot in and across the metropolis?
I’m a fan of Bryant Park’s Winter Village, proper close to our workplace. The vacation vitality is nice, and strolling up Fifth Avenue afterward to see the vacation décor is a favourite.
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