Higharc Raises $95 Million

Higharc Raises $95 Million Series C to Scale AI for Homebuilding

Ninety five million dollars. That’s what Higharc just pulled in for its Series C round. And the reality is, this isn’t some flashy vanity raise. It’s fuel for a company trying to fix a genuinely broken process: how homes get designed, priced, and built in this country.

Higharc, based in Durham, North Carolina, was founded back in 2018 by Marc Minor, Peter Boyer, Michael Bergin, and Thomas Holt. Seven years later, this latest round pushes the company’s total funding past $170 million. That’s not a number you get by accident. Investors keep coming back because the problem Higharc is solving hasn’t gone anywhere. Homebuilding is still slow, still full of manual paperwork, still bleeding money to cost overruns nobody planned for.

Here’s the kicker though. The funding wasn’t even the only headline. Higharc also announced a partnership with US LBM, one of the largest private lumber and building materials distributors in the country. So this isn’t just about raising money and sitting on it. It’s about moving into new territory.

Higharc Raises $95 Million Series C

Let’s be honest, most funding rounds blur together after a while. But this one has some weight behind it. Insight Partners led the round. They’re a global software investor, and they don’t spread themselves thin. Insight has backed more than 900 companies, and over 55 of those have made it all the way to IPO. As of the end of 2025, the firm was sitting on more than $90 billion in regulatory assets. When a firm with that kind of scale decides to lead your Series C, people notice.

This isn’t Higharc’s first rodeo either. There was a $53 million round back in February 2024. Before that, a $21 million Series A led by Spark Capital in 2021. The pattern is clear: steady, escalating confidence, round after round. Higharc says the new capital is going toward expanding AI product development, building more specialized models, and pushing into new corners of the homebuilding industry. Nothing groundbreaking in that plan on paper. But execution is where most companies fall apart, and Higharc has apparently been executing.

Insight Partners Leads the Funding Round

The investor list here is long, and it tells its own story. Wellington Management, Fifth Wall, Spark Capital, Lux Capital, SE Ventures (Schneider Electric’s investment arm), Simpson Strong-Tie, PSP Partners, RXR Arden Digital Ventures, Suffolk Technologies, Vertex Ventures, NC Tweener Fund, and MetaProp all showed up. Some of these names, like Spark Capital, Lux Capital, and SE Ventures, have backed Higharc before. That’s not a coincidence. When early investors keep writing checks round after round, it usually means they’re seeing something work from the inside.

Josh Fredberg, managing director at Insight Partners, put it simply: his firm looks at AI companies across every sector, and Higharc stood out as a clear leader in applying AI to residential construction. He also pointed to something bigger. As more builders standardize on the platform, its move into supplier workflows could end up reshaping the entire homebuilding supply chain. That’s a big claim. But it lines up with what came next in the announcement.

Higharc Partners With US LBM

This is where things get interesting. US LBM is the largest privately owned, full line distributor of specialty building materials in the United States. In 2025 alone, they pulled in $6.8 billion in revenue. That’s not a small partner to land. And it marks the first time Higharc’s technology has stepped outside the homebuilder world and into materials distribution.

As part of the deal, Higharc rolled out a new product called AI Estimating, built specifically for distributors. The tool lets distributors and dealers generate accurate material takeoffs straight from residential floor plans, at enterprise scale. Anyone who has worked around construction knows how painfully manual and error prone that process has always been. US LBM is the first partner to actually put this to work.

Jonathan Greene, Chief Digital and Technology Officer at US LBM, said what sets Higharc apart is the ability to go from a static 2D plan to a precise, dynamic 3D data model in one step. That single step unlocks faster quoting and smarter material planning. For a distributor moving billions of dollars in materials every year, shaving friction out of the estimating process isn’t a nice to have. It’s real money.

What Is Higharc’s Spatial AI?

So what actually makes this work? Higharc calls it spatial AI, and it’s worth understanding why that matters. Most AI tools people talk about today, the large language models, are built around text. Buildings aren’t text. They’re physical spaces. Walls, windows, load bearing columns, a kitchen sink sitting in the corner of a floor plan. None of that reads like a sentence.

Higharc trained its models exclusively on thousands of residential architectural drawings. The comparison the company draws is to self driving cars: just as those systems learn to tell a pedestrian apart from a road sign, Higharc’s models learn to tell a structural wall apart from a window bay. From there, the system builds a machine readable model of an entire home. And because these models are dynamic, any change to a floor plan automatically ripples through to the cost estimate and the construction documents. No re-entering data by hand. No waiting on someone to catch the update three weeks later.

It’s a real problem the company is trying to solve too. General AI tools, when pointed at a floor plan, tend to produce confident answers that are simply wrong. Higharc’s fix is a multi-model validation setup, where layered AI systems check each other’s work, with real human experts still in the loop. It’s not flashy. But it’s the kind of unglamorous safeguard that actually matters when you’re the one paying for the lumber.

Inside Higharc’s AutoTranslate AI Tool

The engine behind a lot of this is something called AutoTranslate AI. It takes a flat 2D floor plan and turns it into a full 3D spatial model in one pass. From there, it generates a precise material takeoff, matched directly against real products, in US LBM’s case, against their own catalog.

The system combines computer vision models with construction specific logic, so the numbers it spits out reflect how homes are actually built, not rough guesses padded for safety. That distinction sounds small until you’ve watched a job site stall because someone ordered the wrong quantity of lumber. It’s not just an accounting error. It’s a delay that ripples through the whole schedule.

Kyle Bear, VP of Research and Development at Signature Homes, a builder working across Alabama and Nashville, said it plainly: a lot of AI tools produce outputs that need so much correction they’re basically unusable. Higharc, he said, is different. It’s grounded in how homes are actually built, so what comes out the other end is usable from day one. That’s not a small compliment coming from someone actually building homes for a living.

How Higharc Is Changing Homebuilding

The bigger picture here is a shift that’s already underway. Design, modeling, and estimating work that used to eat up weeks of manual labor can now move a lot faster. And Higharc has the numbers to back it up. Builders using the platform have compressed product development timelines from months or years down to weeks or days. Community launch schedules have shortened by 25% to 50%. Project margins have climbed by 10% to 15%.

The platform is built to replace AutoCAD and the patchwork of point solutions builders have relied on for years, folding design, estimating, and sales into one system. Permit ready construction documents, real time cost estimates, fully shoppable 3D home models, all in the same place.

Marc Minor, CEO and co-founder, has described the mission as reshaping how builders work, not just assisting them. Cutting time and cost per job, while giving buyers something more personal along the way. That mission now stretches further than it used to. With the US LBM deal, Higharc isn’t only serving the people drafting the plans anymore. It’s serving the people supplying the materials to build them too.

What’s Next for Higharc

With $95 million in fresh capital and a funding history north of $170 million, Higharc has real runway to keep pushing into both homebuilder and supplier workflows. The company says the money will go toward expanding AI product development, building more specialized models, and deepening integration with suppliers and distributors beyond US LBM.

The recognition has already started rolling in too. Higharc landed in the top 50 of the Deloitte Technology Fast 500 and made Fast Company’s Most Innovative Companies list for 2026. The company, still headquartered in Durham, now employs around 188 people and works with homebuilders across North America.

So where does this go from here? If other distributors are watching US LBM’s results closely, and they probably are, this partnership could end up becoming the blueprint for how AI moves out of the design office and into the supply chain more broadly. For now, this Series C stands as one of the largest recent raises in construction technology. And it’s a pretty clear signal that investors think there’s a lot more room for AI to change how homes in this country actually get designed, priced, and built.

Sources used, compiled for the article:

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