Digs, an AI product for home builders, has raised $19.1 million in seed funding.
Digs came out of stealth in 2023 and has raised $7 million twice so far, co-founder and CEO Ryan Fink told Business Insider. It was announced on Thursday that has raised an additional $5 million in seed funding led by Dallas-based SPLY Capital with participation from Lanthorne Homes.
The Vancouver, Washington-based startup uses AI to organize construction documents. Fink, whose last startup, Streem, was acquired by Frontdoor in an eight-figure deal, co-founded the company with chief product officer Ty Frackiewicz.
Digs offers two main products. DigsCanvas will be used for pre-construction and will serve as a hub where trades and vendors can collaborate on diagram creation, Fink said. Once construction is complete, DigsCare handles warranty management, helping builders troubleshoot issues and avoid non-covered claims.
Digs also generates “digital twins,” interactive 3D models, to assist homeowners with maintenance once construction is complete.
“This is their biggest asset in life, and they don’t know anything about it,” Fink said, adding that information during the construction process “usually fades away after the house is handed over.”
The company makes money by selling sheets to builders, who can invite contractors and homeowners as free collaborators.
Diggs is considering selling the product to homeowners, with both the company and the builder receiving a percentage of the purchase price. The company is also considering a subscription service where homeowners can purchase quarterly or seasonal maintenance.
Digs has about 10,000 households using it, and Fink said the company expects to be cash flow positive by the end of next year.
Digs has 28 employees, most of whom work in engineering, product and design. The company plans to use the new funds to strengthen its sales department.
Digs isn’t the only startup developing AI tools for construction. Trunk Tools creates AI agents to help with project tracking, and Scalera uses AI for procurement and bid management.
Here’s a look at the pitch deck Digs used to raise seed funding. One slide was removed to make the deck available for public viewing.
