Krane, a startup developing AI software for the construction supply chain, has raised $9 million in funding.
The San Francisco-based startup has developed an AI agent that helps construction teams manage material procurement and delivery for projects such as data centers, healthcare facilities, and schools.
Its platform brings data from spreadsheets, project schedules, and supplier communications into a single system. Then, use AI agents to automate tasks like tracking orders, following up with vendors by phone or email, and reconciling invoices.
Eshan Jayamanne, founder and CEO of Krane, told Business Insider that his company’s platform typically begins by identifying the equipment and materials specified in a construction project.
“Then we compare lead times, we compare specification requirements, and we think, ‘What are all the suppliers’ quotes and who can we actually work with?’ This is where AI comes in,” he said.
The startup has created multiple AI agents that specialize in different areas of the supply chain, such as shipping and supply risk alerts.
Jayamanne, a former engineer and construction operator who worked on data center projects, founded the company in 2023. It aims to reduce construction project delays and avoid budget overruns, and integrates with existing construction tools such as Autodesk and Procore.
Jayamanne said about half of Krane’s customers are healthcare projects and about a third are data center expansions. He added that data centers are complex projects that could be held up by delays in critical equipment such as generators.
Competition in construction technology is heating up, with companies like TrunkTools and Mastt also leaning into AI agents. While the construction industry has historically been slower to adopt software tools than other industries, Jayaman says that is no longer true.
“This LLM moment changed everything,” he said, referring to large-scale language models, the technology behind AI like ChatGPT.
Jayaman said humans are “in the loop” approving the crane’s AI agent’s decisions, but the voice agent has more autonomy.
The startup’s seed round was co-led by Glasswing Ventures and Link Ventures.
The new funding will be used to expand the product and add new features, such as adding tools for subcontractors and procurement and payment automation.
“I’m really focused on raising ‘enough’ money, because large rounds don’t make sense anymore,” he said, adding that companies like his can use AI to operate with small engineering teams.
Here’s an exclusive look at the nine-page pitch deck Krane used to raise $9 million.