UpCodes Secures $3.36M Pre-Series A Funding - Building Code Compliance

UpCodes Secures $3.36 Million in Pre-Series A Funding

UpCodes, a company specializing in building-code compliance solutions, has recently announced the successful completion of a $3.36 million pre-Series A funding round. This investment increases the total funding received by the startup to $4.15 million.

The latest funding round was spearheaded by Point Nine Capital, a Berlin-based venture capital firm with a focus on Software-as-a-Service (SaaS) and online marketplace businesses.

Legal Victories Strengthen UpCodes’ Position

The company has also achieved a significant legal win. United States District Court Judge Victor Marrero dismissed a lawsuit brought against UpCodes by the International Code Council (ICC), which alleged false advertising and unfair competition.

While a separate copyright lawsuit filed by the ICC remains ongoing, UpCodes previously secured a favorable ruling from Judge Marrero, confirming that its publication of building codes falls under the scope of public domain and fair use principles.

Investor Portfolio

UpCodes benefits from a diverse group of investors. These include the co-founders of PlanGrid – Ryan Sutton-Fee, Ralph Gootee, Tracy Young, and Kenny Stone – alongside Bragiel Brothers, Capital X, Flex Capital, and Liquid 2 Ventures.

Furthermore, the company participated in the Y Combinator summer 2017 accelerator program, bolstering its early development.

Growth and User Base

Established in 2016 by Garrett and Scott Reynolds, UpCodes currently boasts approximately 500,000 monthly active users.

Its customer base includes prominent construction companies such as Stantec and ARCO National Construction, architectural firms like SOM and Ennead, and organizations like Airbnb, Cornell University, and the State University of New York.

The platform also serves a broad range of individuals, including rental property owners, tenants, homeowners, contractors, plumbers, and electricians – essentially anyone needing clarification on building-code regulations.

Product Evolution

UpCodes initially launched a searchable database of building codes, integrated with collaborative features.

In 2018, the company introduced UpCodes AI, a tool designed to analyze 3D models created using Building Information Modeling (BIM) data and identify potential code-related issues for architects.

Introducing the Code Calculator

The company’s most recent innovation is its code calculator. This feature is intended for users who require compliance information but may lack expertise in navigating complex building codes.

These codes often vary by location, encompass numerous sections, and are frequently subject to amendments.

Responding to queries such as “what is the allowable square footage per floor,” “how many exits are required on this level,” or “what is the maximum permitted corridor length,” the code calculator provides a comprehensive list of applicable requirements, with direct links to the relevant code sections.

Currently, this feature supports over 40 states and is available as part of UpCodes’ premium subscription plan.

Vision for Simplified Compliance

“Our ultimate aim is to empower anyone, regardless of their building-code knowledge, to easily find answers to their compliance questions through a user-friendly interface,” explains Scott Reynolds, a former architect and co-founder of UpCodes.

He emphasizes that even within architecture, engineering, and construction firms, levels of familiarity with building codes can vary significantly.

“We’ve received feedback from users who comply with one section of the code, but fail to recognize a stricter requirement elsewhere, such as within the fire code,” he adds. “This can lead to significant problems down the line, and that’s precisely what we’re striving to resolve.”

A Modern Approach to Compliance

The Reynolds brothers draw a parallel between UpCodes’ code calculator and tax software like TurboTax, which simplifies tax compliance for individuals without requiring them to directly interpret tax laws.

“When individuals file their taxes annually, they don’t typically delve into the intricacies of the tax code; they utilize tax software,” states Garrett Reynolds, previously a software engineer at PlanGrid. “The field of compliance is currently lagging behind, and we aim to modernize it, eliminating the need for individuals to pore over the complex and often convoluted raw building codes.”

Future Development

The newly acquired funding will be allocated to expanding the team and accelerating the development of new features, including automated calculation capabilities.

“Our goal is to continue expanding our capabilities, so that, for example, a homeowner using their iPhone can easily obtain any compliance information they require,” concludes Scott Reynolds.