Lumber has announced a $15.5m Series A funding round to fuel its product development and market expansion
The AI-powered construction workforce management platform aims to remove the complexities of payroll, compliance and HR operations by automating time-consuming back-office functions.
This leads to a greater allocation of resources towards core construction activities, ultimately driving increased productivity and enhanced project profitability.
The funding round was led by Foundation Capital, with participation from Tishman Speyer, Carbide Ventures, 8VC, Sure Ventures and FirsthandVC.
Developing autonomous AI construction agents
The funding round follows a year of rapid product development for Lumber, including eight new product launches, as well as strong momentum with speciality contractors and construction partners, and strategic team expansion.
Lumber will use the cash injection to fuel product development and market expansion, focusing on enhancing its AI capabilities and scaling its customer success operations.
The company is developing autonomous AI agents that interact with real-time digital representations of construction sites, enabling companies to optimize operations, improve safety and compliance, and reduce costs and inefficiencies.
These agents include:
- HR AI agent: Manages hiring, onboarding and training for construction workers.
- Payroll AI Agent: Automates wage calculations, tax deductions, benefits management and multi-state payroll compliance.
- Safety AI Agent: Ensures OSHA compliance, tracks worker fatigue and prevents overexertion.
Foundation Capital and industry leaders back Lumber’s vision
The construction industry faces significant challenges, including a persistent skilled worker shortage, with 80% of firms reporting difficulties finding qualified employees (AGC). McKinsey’s Construction’s Digital Transformation report indicates that full adoption of digital technologies can improve project performance by 10%-15%, reduce costs by 5%-10%, and increase productivity by 15%-20%.
“We are on the verge of a labor crisis in the construction industry and really all skilled labor sectors in America,” said Zach Noorani, Partner at Foundation Capital.
“Lumber removes the complexities of payroll, compliance, and HR operations for construction firms. But critically the Lumber platform is also built for the construction worker, helping them build safe and thriving careers in the trades. The more Lumber grows, the more they help fortify one of our most important industries.”
