Insider Brief
- Handoff raised $5.8M in strategic funding led by Nemetschek Group and Masco Corporation to enhance its AI assistant platform for residential construction contractors.
- The platform automates estimating, project management, and payments for over 10,000 users managing $6B+ in projects, offering real-time cost data and contractor-friendly workflows.
- With backing from major industry players, Handoff aims to improve housing affordability and efficiency by streamlining operations for small and mid-sized construction firms.
PRESS RELEASE — Handoff, the AI assistant designed specifically for residential construction contractors, announced it has raised $5.8 million in strategic funding led by Nemetschek Group and Masco Corporation, with participation from existing investors Initialized Capital, Afore Capital, Y Combinator, and Greycroft Capital. The funding will accelerate product development and expand the platform’s capabilities for the underserved residential construction market.
Handoff’s AI-powered platform is already trusted by more than 10,000 monthly active users who collectively manage over $6 billion in annualized construction projects. The platform automates time-consuming administrative tasks like estimating and project management, allowing contractors to focus on building better spaces for America.
“Handoff is bringing powerful AI agents to an industry long underserved by traditional software. We’re excited to support residential contractors across the country, now with the support of industry leaders like Masco Ventures and Nemetschek Group” said Dmitry Alexin, Founder and CEO of Handoff.
Addressing Critical Industry Challenges
The residential construction industry faces unprecedented challenges including inflation, supply chain disruptions, and labor shortages. Traditional construction software, designed for large corporations, fails to meet the needs of small to medium-sized residential contractors who require simple, affordable, and intuitive tools.
Handoff solves this problem by delivering an AI agent that “speaks contractor” — understanding industry terminology, workflows, and pricing without needing extensive training or setup. The platform provides:
1. Real-time, localized cost estimates based on current market data
2. Automated project management workflows from start to finish
3. The lowest digital payment processing fees on the market
“It has automated a large part of my estimates, huge help for a small and busy business like mine,” said Connor S. from Shanahan Builds. “When I’m busy making sure my clients are happy and the job site is running smoothly, Handoff is helping to shorten my estimating and takeoff time.”
Strategic Partnerships Drive Innovation
The investment from Nemetschek Group, owner of industry standard Bluebeam, and Masco Corporation, manufacturer of leading materials brands including Behr® paint and Delta® faucets, provides Handoff with both capital and strategic expertise.
Handoff plans to use the funding to enhance its AI agents, expand features that support more aspects of construction business management like materials ordering and financial management, and grow its team to support rapid user adoption while maintaining best-in-class customer support.
Impact on Housing Affordability
By streamlining operations and reducing administrative overhead for contractors, Handoff aims to make residential construction more efficient and ultimately more affordable. The platform benefits both contractors and homeowners by providing:
1. Faster, more accurate project estimates
2. Greater transparency in pricing and project scope
3. Improved communication throughout the construction process
Better service quality through operational efficiency
The platform has also proven valuable for homeowners navigating insurance claims and rebuilding after disasters. “I’ve been using Handoff to fight with my insurance company and get a handle on the reality of rebuilding my home after losing everything in the Palisades Fire,” said Wayne Ariola, a homeowner from Pacific Palisades, CA. “It has allowed me to be 100x smarter and better equipped to rebuild.”
For more details about today’s announcement, visit: www.handoff.ai/blog/handoff-raises-5-8m-for-residential-construction
About Handoff
Using generative AI technology and real-time, localized construction databases, Handoff provides remodelers with a fast and accurate way to create construction cost estimates in seconds. Over 40K contractors have used Handoff to create instant construction estimates and automate their business operations with AI. Founded in 2019, Handoff’s parent company, 1build, has raised over $25M in funding from renowned investors and construction leaders like Initialized, Greycroft, Y Combinator, and Masco Ventures.
Al Nafea
Handoff AI
+1 256–567–7003
email us here
