Materialspace, an artificial intelligence startup founded by twin brothers Yoash and Nadav Palmor, has raised $7 million in Seed funding. The company plans to use the capital to automate planning, pricing, and execution workflows for interior construction in large-scale projects.
The round was co-led by StageOne Ventures, SecretChord, and Timber Grove Ventures. Maccabee Ventures and GC Ventures also participated.
Yoash Palmor, the company’s chief executive officer, previously ran a consulting firm focused on manufacturers, contractors, and distributors. During that time, he worked with more than 100 companies that closely resemble Materialspace’s current customer base.
Meanwhile, Nadav Palmor serves as chief product officer. He has held senior roles at several AI and data-focused startups. These include Oolo AI, which Appsflyer later acquired, and Agora.
Interior construction planning and procurement remain largely manual, especially in large residential and commercial developments. In many cases, teams still rely on disconnected legacy tools, spreadsheets, and manual data entry.
As a result, workflows often become fragmented. These inefficiencies cause delays and increase costs. Moreover, the challenges are becoming harder to manage due to a global shortage of skilled labor.
Materialspace aims to consolidate these workflows into a single AI-driven platform. Its software analyzes blueprints, product catalogs, and pricing data. It then structures this information so teams can move seamlessly from cost estimation to design and ordering within one system.
Since launching less than a year ago, the company reports early traction. Adoption has mainly come from distributors and manufacturers looking to scale operations without adding headcount or compressing margins.
“Many AI companies are trying to optimize broken workflows,” said Yoash Palmor, Materialspace’s co-founder and CEO. “We’re starting from a different, more ambitious premise: that all of our customers’ critical business workflows should be one continuous, intelligent process. AI finally makes it possible, and once it is done, the economics of the businesses we work with fundamentally change.”
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