Spacial Raises $10M Seed Round to Automate Residential Construction Permitting with AI

Palo Alto-based Spacial has raised $10 million in seed funding to accelerate the development of its AI platform that automates engineering and permitting for residential construction, announced in a press release. The round was led by TLV Partners, with participation from Mango Capital, Re Angels, and HTV.

Founded in 2024, Spacial’s platform converts 2D architectural drawings into detailed 3D, code-compliant structural and MEP (mechanical, electrical, and plumbing) plans. The system includes design conflict detection, local code validation, and professional engineering oversight, aiming to streamline the design-to-permit process.

The company reports 300% revenue growth since launch and now supports over 140 active projects across the U.S. Spacial employs more than 20 people with headquarters in Palo Alto and an R&D center in Tel Aviv. The new funding will be used to expand its AI capabilities and grow its sales and customer success teams.

Spacial’s technology integrates with existing architectural tools, helping catch design conflicts early and reducing material waste and rework. The company is also partnering with local authorities to simplify permit reviews and ensure compliance with municipal codes.