What do they actually do
Permitify is a web app that reads uploaded construction-plan PDFs, pulls site-specific zoning and parcel data, and returns an AI-generated compliance report with flagged issues and plain‑English guidance. It’s used today by architects, small-to-mid engineering firms, builders, and permit expeditors to catch problems before submitting to a jurisdiction (permitify.com; builders page).
The company advertises 24‑hour AI plan reviews, claims it has processed “1000+ permits” and helped users cut “20%” off time to permit, and offers basic collaboration features (invite teammates, share notes) (builders page). Pricing shows early‑access tiers at $99/month (small firms), $149/month (medium), and custom for larger teams, with a live web product and public beta/Slack for early users (permitify.com; LinkedIn). They also position the same tech for municipal plan examiners to speed routine checks (YC profile).
Who are their target customer(s)
- Small architecture firms: Manual plan checks against local zoning and codes consume hours and lead to missed issues and resubmittals. Limited staff makes parcel research and permit-ready documentation slow.
- Small-to-mid engineering firms: Repetitive compliance checks and changing drawings create rework and version-control headaches. They need consistent, quick reviews so engineering isn’t blocked by permit cycles.
- Builders / general contractors: Permit delays and unexpected code fixes push schedules and raise costs. They want confidence plans will pass review before ordering materials or booking crews.
- Permit expeditors / consultants: Parsing different municipalities’ rules and plan sets is manual and error‑prone. Time is lost to back‑and‑forth with jurisdictions and assembling submission‑ready packages.
- Municipal plan examiners / building departments: Backlogs and repetitive checks slow reviews and create inconsistency. They need traceable, auditable decisions that cite code to defend approvals and enforcement.
How would they acquire their first 10, 50, and 100 customers
- First 10: Founder-led pilots with public-beta signups and YC intros: run free white‑glove reviews on one active project per customer in exchange for feedback and a case quote.
- First 50: Focus on one to two metros with strongest coverage; targeted outbound to local A/E firms, builders and expeditors using early case studies, time‑limited discounts, and simple referral credits.
- First 100: Hire a CS lead and a sales rep to run multi‑project pilots and renewals; add partnerships with expeditors and an e‑permitting vendor for bulk access and integration proof, plus two short evidence‑backed case studies and clear self‑serve docs.
What is the rough total addressable market
Top-down context:
Design‑team only TAM is about $160M/year using ~135k U.S. architecture and engineering firms and current entry pricing (NAICS; permitify.com). Adding a share of contractors/expeditors lifts the private‑market TAM to roughly $270M–$700M/year, and municipal upside ranges roughly $50M–$1B+ depending on how many AHJs adopt and price levels (AGC; Shovels.ai; Census BPS).
Bottom-up calculation:
Bottom‑up: ~135,200 A/E firms × ~$1,200/year ARPU ≈ $162M/year (NAICS; permitify.com). Expanded scenarios add 10%–50% of ~919k construction establishments to the buyer pool at similar ARPU, yielding ≈$267M–$706M/year (AGC). Municipal pricing could be AHJ subscriptions (10k+ jurisdictions × $5k–$100k/year → ~$50M–$1B+) or per‑permit fees (1M+ permits × $50–$100/check → ~$50M–$130M) (Shovels.ai; Census BPS).
Assumptions:
- Entry ARPU around $1,200/year based on current $99–$149/month tiers (permitify.com).
- Only a subset of construction establishments are relevant buyers (those submitting full plan sets) (AGC).
- Municipal adoption depends on auditability, integrations, and procurement; achievable price points vary widely by jurisdiction size (Shovels.ai).
Who are some of their notable competitors
- CodeComply.ai: AI-first plan‑review tool that scans plans, flags code issues, compares versions, and generates compliance reports for applicants and reviewers; overlaps directly with Permitify’s automated pre‑submission checks.
- CivCheck / Comply AI: Guided AI plan review for applicants and municipal reviewers, combining code-aware checks with reviewer workflows to accelerate approvals—competes on speed and reviewer support.
- Govstream.ai: Govtech startup building an AI assistant for municipal permitting that reads codes, GIS, and plan sets to support examiners; competes for government adoption of AI in reviews (coverage: GovTech).
- Accela: Entrenched e‑permitting platform used by many cities, offering digital plan review and workflows; a strong incumbent for municipal buyers who prefer integrated solutions.
- Bluebeam (Revu/Studio): Industry-standard PDF markup and collaboration for AEC teams; while not code‑aware, it is a default tool for plan review workflows and competes for user attention in private‑sector checks.