America’s $1.6T development trade faces a important infrastructure disaster: whereas housing begins reached 1.43M models 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 dwelling costs up $88K since 2020 whereas development timelines stretch past 300 days from allow to remaining inspection in lots of markets. PermitFlow addresses this systemic breakdown with AI brokers that automate your complete pre-construction workflow, from jurisdiction analysis via remaining 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 quicker 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 method 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 study extra concerning the enterprise, the corporate’s future plans, current funding spherical that brings its whole capital raised to $90.5M, and far, far more…
Who had been your traders and the way a lot did you increase?
$54M Sequence B led by Accel, with participation from Kleiner Perkins, Felicis, Initialized Capital, Altos Ventures, Y Combinator, and present traders.
Inform us concerning the services or products that PermitFlow presents.
PermitFlow presents a set of AI brokers, together with modules for allowing, inspections, and license administration, with extra in improvement to fulfill 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 intently with contractors, builders, and native AHJs, our group noticed how fragmented programs 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 improvement, and residential companies. PermitFlow was constructed to streamline your complete pre-construction course of, beginning with quick, easy, and predictable allowing.
How is PermitFlow totally different?
PermitFlow is the main AI firm for development as a result of we perceive the nuances of each development and know-how intricately. Our group combines actual world development expertise and deep technical experience to resolve complicated issues with considerate, impactful options.
What market does PermitFlow goal and the way massive 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 powerful place to remain targeted no matter macro circumstances. We’re investing in product and buyer outcomes with a disciplined plan to verify we stay a dependable long-term companion for builders.
What was the funding course of like?
We had very robust demand from a number of high tier traders. The method was extraordinarily quick. We’re thrilled to be partnering with Accel in the long run!
What are the most important challenges that you just confronted whereas elevating capital?
Fundraising whereas working a hyper-growth firm is all the time intense. The enterprise doesn’t pause, so balancing prospects, hiring, product momentum, and the increase itself was an actual juggling act. I’m grateful for a way our group dealt with it.
What elements about what you are promoting led your traders to jot down the examine?
We’re lucky to work with unimaginable development corporations throughout the spectrum, and we’ve earned their belief over time by delivering actual outcomes. Traders additionally noticed a big, sturdy market and a group that’s been executing rapidly towards it.
What are the milestones you intend to attain within the subsequent six months?
This capital permits us to speed up product improvement and develop our group to fulfill rising demand from builders nationwide.
What recommendation are you able to provide corporations in New York that should not have a contemporary injection of capital within the financial institution?
Each firm’s scenario is totally different, so I don’t need to over-generalize. What’s been true for us is treating capital as the results of constructing a powerful, enduring enterprise. We do that by staying near prospects, controlling burn, and specializing in actual worth creation. If you happen to do this persistently, 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 group to fulfill 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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