Builders FirstSource, the largest U.S. building materials distributor by revenue, is writing the only check in Digs' $25.3 million Series A — a structure that gives the Vancouver, Wash.-based startup both capital and a distribution partner embedded in nearly every major homebuilding market in the country.
The two companies announced a five-year commercial agreement alongside the financing. Builders FirstSource will work with Digs to accelerate product development and deepen platform integration, a commitment that goes beyond a passive equity stake.
Digs builds AI software for residential construction, targeting the workflow layer between contractors, builders and homeowners. The platform covers pre-construction planning and post-sale warranty management, two phases where paper-based and fragmented processes still dominate.
The Series A follows a $19 million earlier round. Total funding now stands at roughly $44 million, a meaningful capital stack for a construction-tech startup in the growth phase.
Builders FirstSource's decision to lead alone rather than co-invest with financial VCs is a deliberate structural bet. The company gets concentrated economics in Digs' upside and, through the commercial agreement, a direct channel to push AI-powered workflows to the professional builder customers it already supplies with lumber, trusses and millwork. For Digs, the trade-off is a tighter partnership with a single strategic investor whose distribution reach substitutes for the market-development budget a traditional Series A would fund.
The residential construction industry is one of the last large sectors where software adoption remains thin. Most homebuilders outside national production builders like D.R. Horton and Lennar still run projects through spreadsheets, email chains and disconnected point solutions. AI tools that connect materials ordering, scheduling and warranty documentation into a single workflow have a clear productivity case, but selling into that fragmented market is expensive and slow without an established distribution channel.
Builders FirstSource solves exactly that problem for Digs. The company operates hundreds of locations across the United States and sells directly to professional builders on nearly every job site in its coverage area. Embedding Digs' software into those builder relationships gives the startup access to customers it would otherwise spend years acquiring.
The economics of the construction-tech sector make strategic investment from a materials distributor logical. Builders FirstSource generates revenue by selling physical products and its margins are tied to commodity prices and housing starts. Software that makes its builder customers more efficient keeps those customers loyal and increases order frequency. The five-year commercial agreement suggests Builders FirstSource views Digs as infrastructure for its own customer retention strategy.
Housing starts have remained under pressure as mortgage rates stay elevated, which puts a premium on efficiency tools that help builders reduce cycle time and warranty costs. Shorter build cycles and fewer post-sale defect claims directly improve a builder's per-unit economics — the exact pain point Digs targets.
