Rebar Raises $14 Million to Transform the HVAC Sector with AI

Rebar, an innovative startup based in New York, recently announced that it has raised $14 million in a Series A funding round, a news revealed exclusively by Crunchbase News. This funding round was led by Prudence, with notable participation from Zero Infinity Partners, Founder Collective, Villain Capital, and Optimist Ventures.

Founded in October 2024, Rebar stands out for developing an artificial intelligence-based operating system specifically designed for commercial HVAC suppliers. According to the company, this technology enables the generation of quotes 60% to 70% faster than traditional methods. Rebar's proprietary computer vision models analyze construction plans to identify, categorize, and count all HVAC equipment, thereby facilitating the creation of material lists and the generation of quotes.

Rebar has chosen to focus exclusively on the HVAC industry, a strategic decision explained by Evan Brown, co-founder and CEO of the startup. "Most companies either focus on other trades or try to cover all trades at once, which ultimately means they don't serve any of them particularly well," he told Crunchbase News. "Rebar takes the opposite approach. Our AI is trained on millions of HVAC plans and reflects the workflows that actual estimators use when creating a quote."

In 2026, Rebar managed to double its annual recurring revenue in just six weeks, thanks to the acquisition of dozens of new clients who are now using its platform. Rebar's business model is based on a usage-based subscription, allowing companies to increase their proposal volume and improve their chances of winning projects. Brown explained that companies using Rebar win, on average, 5% to 10% of the proposals they create, a process that could previously take up to a week before the adoption of their solution.

Brown also noted that, while it is still early and construction contracts often take years to finalize, initial conversations with clients suggest that success rates could increase by about 2x to 3x using the new tool. This same process can now be completed in a matter of minutes, according to Brown.

Currently, Rebar has 40 clients, seven of whom are investors in the startup. Although Rebar's first product is an AI-based quoting system for HVAC suppliers, Brown stated that the startup plans to expand its product capabilities to plumbing and electrical equipment suppliers through additional agents.

Brown's interest in the HVAC industry stems from summers spent working with his uncle, who owns a large commercial HVAC distributor. He later worked as an estimator and sales engineer at Johnson Barrow/DMG Corp., where he collaborated with contractors, engineers, and manufacturers to design, sell, and support custom HVAC systems. "I spent over five years in this field focusing on designing and selling HVAC equipment and going through the manual process we are solving at Rebar many times," he recalls. "I reviewed and built inventory lists from a plan by printing out plans, using highlighters and rulers. I used PDF editors. I really used everything, and I never thought I would end up in technology, nor that I would create a tech company."

When this company was acquired and became part of Ambient Enterprises, Brown had the opportunity to explore the application of AI in daily operations. Eventually, he decided to take the plunge and founded Rebar with Andrew Schwartz.

Jordan Viniar, a partner on Prudence's investment team, told Crunchbase News that Brown's background in mechanical engineering combined with his experience in the HVAC industry gives him a "unique" firsthand perspective. Prudence is always looking for companies that leverage unique technologies to automate historically manual processes, according to Viniar, often in industries whose needs have never been met by purpose-built software. "Rebar fits this profile perfectly — HVAC, plumbing, and electrical are large industries but historically overlooked, with dozens of manual workflows, none of which could be automated without AI," he wrote in an email. "For the first time, Rebar provides its clients with tools that, in many cases, compress the time needed to accomplish manual tasks by over 90%, resulting in greater efficiency, reduced costs, and increased revenue."

Venture capital investment in real estate-related startups has rebounded in recent years after declining from the pandemic peak. In 2025, startups in the sector attracted about $10.5 billion in funding, ranging from seed to growth stages, according to Crunchbase data. This represents an increase of about 17% from the $9 billion in 2024, with much of the recent investment directed toward startups promising better returns through the use of automation or AI.