PinPoint Analytics, an innovative startup leveraging artificial intelligence (AI) to refine the bidding and estimating processes within the road construction sector, has successfully secured $3.2 million in seed funding. The funding round was led by HG Ventures, the corporate venture arm of The Heritage Group, with participation from Compose VC.
In the $200 billion-plus construction industry, contractors have long faced challenges in accessing and utilizing the extensive data embedded in historical project bids. PinPoint Analytics addresses this issue by employing advanced algorithms to analyze vast amounts of data from historical bids, thereby enabling users to enhance their cost estimates.
The PinPoint Analytics platform provides a comprehensive analysis and recommendations based on variables such as materials, labor, equipment, supply chain logistics, and competitor analysis, while automatically adjusting for factors such as seasonality, geography, and market conditions. This sophisticated approach allows contractors to significantly reduce the time required for the estimating process, while still producing highly competitive bids that optimize both cost and margin. Concurrently, government agencies and engineering partners benefit from the platform’s real-time trend analysis, which facilitates the creation of accurate project budgets and mitigates the risks of inaccurate estimates, delays, and re-bids.
Co-founded by CEO Jim Carr, who brings two decades of experience in data and analytics through various successful startup exits, PinPoint Analytics is also supported by a team of experts in the heavy construction industry. Longtime advisor Mark Zuradai is transitioning to a full-time role as Chief Operating Officer, drawing on his extensive experience in product development, technology, AI, and sales and marketing.
"Until now, construction companies' estimating teams have had to make do with a labor-intensive process that relies on human judgment to fill in the gaps in the available data," stated Carr. "Our platform leverages all the recent advances in AI and machine learning to remove the guesswork, saving a massive amount of time, producing higher quality estimates in a matter of minutes."
Kip Frey, Managing Director of HG Ventures, will join the PinPoint Analytics board. "We are always seeking investments with the potential to transform the industries in which The Heritage Group operates, and PinPoint Analytics is a great example of that," Frey remarked. "We have long understood that the use of machine learning is critical to the future success of the construction industry, but existing software solutions only provide a partial picture. PinPoint's advanced algorithms change the game, and we see huge advantages for the whole sector."
