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Construction projects are inherently complex, with numerous moving parts. The traditional model of general contractors, subcontractors, and vendors adds layers of intricacy, as the success of an entire project can hinge on the performance of any single component. To ensure timely and budget-conscious project completion, it’s crucial to establish and maintain transparency and accountability among all parties involved. Trestle is an innovative AI-powered vendor management and assessment platform designed to streamline the construction process. By prequalifying all vendors and providing performance reviews, Trestle offers a comprehensive solution to the challenges faced by general contractors. The platform enables them to manage workflow and procurement processes in a centralized location, while also automating the collection of subcontractor and supply information from both internal and external systems. The benefits of this approach are significant. By standardizing and simplifying the procurement process, Trestle empowers general contractors to scale their operations and take on more projects. At the same time, it helps mitigate the risks associated with vendor management, ensuring that projects are completed on time and within budget.

AlleyWatch caught up with Trestle Cofounder and CEO Victor Zhang P.E. to learn more about the business, the company’s strategic plans, recent round of funding, and much, much more…

Who were your investors and how much did you raise?

$2.3M from Lerer Hippeau, Metaprop, Laconia, Alumni Ventures, The Legaltech Fund, Redbud, and Meridian.

Tell us about the product or service that Trestle offers.

Trestle is the construction industry’s most advanced vendor risk management platform providing automated prequalifications and vendor performance reviews. With AI-powered document handling, automated approvals, and precise data collection, Trestle enables organizations to qualify subcontractors and suppliers quickly and accurately. Our API seamlessly connects to existing dashboards for unlimited flexibility—an edge our competitors can’t match.

What inspired the start of Trestle?

I spent 15 years in the construction industry working for general contractors on multi-billion dollar infrastructure projects across the US. In my role leading estimating teams on bids, the need for more transparent communication between the project and head office on how subcontractors and suppliers were performing became clear. At best, subcontractors would be reviewed at the end of a project, but more was needed to capture the risks and issues that happened during the lifecycle of the project. This led me to reach out to Jason (cofounder), my roommate in college who had been working as a software engineer for over a decade, to create a better solution for managing the risks associated with working with subcontractors and suppliers. For us the problem was clear, the information was there but a lack of transparency was putting a trillion-dollar industry at risk.

How is Trestle different?

Trestle allows general contractors (GCs) to instantly qualify a subcontractor or supplier using the GCs custom criteria. Vendor-submitted documents are verified by Trestle and checked against the submission in real-time, ensuring accuracy and reliability. Other solutions take days to weeks to issue a qualification result and many can’t tell the difference between an OSHA form and a drawing of a cat. Trestle’s solution utilizes the latest innovations in AI and machine learning technology, making us lightyears ahead of the competition. Combined with our unique mobile review system for collecting how vendors perform on a general contractor’s projects, there’s nothing else like Trestle.

What market does Trestle target and how big is it?

Trestle targets the trillion-dollar heavy construction industry

What’s your business model?

Trestle is an enterprise SaaS business serving general contractors and owners as well as their subcontractors and suppliers.

How are you preparing for a potential economic slowdown?

A large part of Trestle’s customer base is general contractors in the public infrastructure sector. While there may be potential economic slowdowns in the private development market, there are ample publicly funded construction projects as a result of the increase in federal infrastructure spending. Trestle is well-positioned to handle potential economic slowdowns and is less impacted by market liquidity.

What was the funding process like?

Being first-time founders, the funding process had a steep learning curve. We were told this was a challenging climate to fundraise in, but since we didn’t know any better, we just kept going anyway. We were very fortunate to have raised this round in a short time and even more fortunate to have such an amazing group of investors. It really couldn’t have turned out better.

What are the biggest challenges that you faced while raising capital?

Coming from construction, an industry that feels as far away from venture capital as possible, there were a lot of challenges. Learning to focus on our big vision and convey what makes Trestle singular clearly took a lot of iteration and refinement.

What factors about your business led your investors to write the check?

Victor’s extensive industry experience and knowledge combined with Jason’s technical background formed a team that not only understood the problem but could also build software in-house to solve the problem.

What are the milestones you plan to achieve in the next six months?

We plan to help general contractors prequalify several thousand vendors in the coming months, saving tens of thousands of hours and reducing project losses.

What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?

Build something that you can get out into the market with the capital you have so you can start a dialogue with customers and learn what their true needs are.

Where do you see the company going over the near term?

We’ll continue to grow our vendor risk management offering, with a focus on deploying AI and automation in thoughtful ways that meet the expectations and actual needs of the construction industry.

What’s your favorite fall destination in and around the city?

Do the Berkshires count as around the city? If so, it’s definitely my favorite place to go and spend some time in nature. Can we name names? The Granville House in Great Barrington is simply amazing; I’ve been going there every year since they opened.

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Check out the whole article here: Trestle Raises $2.3M to Tackle The Construction Industry’s Biggest Challenge.