Funding 4 min read

Digs Didn't Raise From a VC. It Raised From Its Distribution Channel.

A $25.3M Series A led by Builders FirstSource — a leading US supplier of structural building products — alongside a five-year commercial agreement. The second time this summer a building-products distributor has attached itself to the software layer above its own catalogue.

A row of houses under construction with exposed roof trusses and scaffolding.

Digs has raised $25.3 million in a Series A led by Builders FirstSource, announced on August 25 alongside a five-year commercial agreement between the two companies. The Vancouver, Washington company was founded in 2022 by Ryan Fink and Ty Frackiewicz and sells AI-assisted software for residential homebuilders.

The round is unusual in who led it. Builders FirstSource is not a venture fund. It is, by its own description, a leading US supplier of structural building products, operating roughly 565 locations across 43 states with around 28,000 employees. The company that sells builders their trusses and framing packages now owns a piece of the software those builders use to plan and hand over the house.

What Digs Actually Does

The product splits into three pieces, per the company’s site: DigsCloud for file management, document organisation, e-signatures and markup; DigsCanvas for preconstruction — scheduling, diagramming, AI-assisted takeoffs and 3D floor plans; and DigsCare for the homeowner handoff, warranty management and a resident-facing portal.

In coverage of the round, Fink described the result as a “CarFax for the home” — a durable digital record replacing the static PDF blueprint set that a homeowner receives, if they receive anything at all.

That third module is the one worth paying attention to. Preconstruction software is a crowded category. Post-occupancy is not. The warranty period is where a builder’s margin quietly leaks — callbacks, disputes over what was installed, nobody able to find the spec sheet for a two-year-old water heater — and almost nobody is selling into it, because the buyer at that stage is the homeowner and the homeowner is not a software purchaser.

Digs’s answer is to make the builder the buyer and the homeowner the beneficiary. Whether that holds up commercially is genuinely untested.

The Distributor-as-Investor Pattern

This is the second time this summer that a building-products distributor has attached itself to the software sitting above its own catalogue. In late June, residential design platform Higharc closed a $95 million Series C and launched an AI Estimating product with distributor US LBM as its first named partner — though there, US LBM is a commercial partner, not an investor. Builders FirstSource has done both at once, which is the escalation worth noting.

The logic is the same in both cases, and it is not really about venture returns. A distributor’s problem is that its catalogue is a commodity and its relationship with the builder is transactional. If the takeoff — the moment when a floorplan becomes a bill of materials — happens inside software the distributor is attached to, the catalogue stops being a commodity and starts being a default. Builders FirstSource CEO Peter Jackson framed the deal in customer terms, saying its customers want technology that helps them “operate more efficiently.”

That is the strategic prize, and it is considerably more valuable to Builders FirstSource than a markup on a Series A. It is also the risk for Digs, discussed below.

Traction

Digs currently has 37 employees and expects to pass 60 by the end of the year, hiring into AI development, engineering, design and product. SiliconFlorist reported the round brings total funding to nearly $50 million since the 2022 founding, building on a $5 million pre-Series A.

On usage, the company says it has thousands of homes on the platform across all 50 states, and charges builders on a SaaS basis. Its site names builders including MassaRossa, Cascade West, Rogue Builders and Vincent Longo.

The distribution claim is the eye-catching one: the agreement is described as extending Digs into an ecosystem serving roughly 140,000 Builders FirstSource customers. That is an addressable number, not a user number, and the distinction matters enormously. Nothing in the announcement says how many of those builders will ever open the software.

The Honest Caveats

“Thousands of homes across all 50 states” is the company’s own traction claim, reported in coverage of the round rather than independently verified. We have not confirmed it with any named builder.

Total-raised figures vary by source. SiliconFlorist puts cumulative funding at nearly $50 million; other coverage of the same round put it at roughly $47 million. We have not seen a company statement reconciling the two, so treat the number as approximate.

We could not confirm the full investor list. Some reporting named additional participants alongside Builders FirstSource; SiliconFlorist’s account describes Builders FirstSource as the sole lead and names no others. Rather than guess, we have named only the lead, which every source agrees on.

Strategic money has strategic strings. A five-year commercial agreement with your largest investor is distribution and dependency in the same document. If Digs later wants to integrate with a competing distributor — or if Builders FirstSource decides the capability should be in-house — the cap table is not neutral. Neither company has said anything about exclusivity, and we do not know the terms.

What to Watch

Whether the homeowner module survives contact with the incentive structure. Digs’s most differentiated product is DigsCare, which serves the person who does not pay: the resident. Its most strategically valuable product to its lead investor is the takeoff, which serves the person who buys lumber.

Those two roadmaps compete for the same 60 engineers. Which one gets built out over the next eighteen months will say more about what this company becomes than the round size does.