This edition of Local Radar highlights three startups betting that AI can reinvent some of the most established categories in local commerce. From Cascade rethinking construction job acquisition, to Bidbus reshaping the way used cars are sold, to Naïve streamlining the process of starting a business, the common thread is software designed for an AI-native world rather than retrofitted for one.

1. Cascade

For construction companies, securing new jobs is a constant “treasure hunt,” says Cascade co-founder Hannia Zia. She knows this pain point firsthand from seeing her father struggle to operate a construction company in Pakistan. So she started Cascade to help architecture, engineering, and construction (AEC) firms find and win new business. The company recently raised $3.5 million in seed funding to do so. Backers include Andreessen Horowitz Speedrun, Ada Ventures, and Snowball VC. The way the platform works is that it predictively matches a company’s strengths with a database of currently available products. Using that intelligence, small construction firms can devote limited resources to chasing the jobs they’re most likely to land. This includes both private sector and government contracts that are available for bids, as well as predictive modeling about what bids may be coming up. Altogether, it’s an AI-fueled and data-driven play to help small construction firms get an information edge.

2. Bidbus

There’s plenty of auto-tech out there that helps consumers buy cars and dealers sell cars. But what about the market constituent that wants to sell their used car? This is the underserved segment that Bidbus is addressing. The Los Angeles-based startup has developed a digital marketplace where individual car sellers can accept bids from multiple dealers. This can result in an ideal sale price for private sellers, given that the price is bid up. According to Bidbus, this system results in prices that are often $2K to $3K higher than what a seller might get on Carvana. And this is a familiar buying process for dealers, given that they often buy cars at auctions to fill out their inventory. The company has attracted Series A funding to the tune of $15 million from Ibex Investors, Mucker Capital, FJ Labs, Motley Fool Ventures, Data Point Capital, and Walter Ventures. The company will use the funding to expand beyond Los Angeles to new U.S. markets and sign new dealership groups. It’s already secured large players like  Lithia Motors and Penske Automotive, and it has helped sell 10,000 cars on its platform.

3. Naïve

Even in a digital age, starting a company – including SMBs – is a labyrinth of red tape and busywork. It’s everything from securing municipal licences to getting a trademark, to establishing credit. Fortunately, we’ve entered the age of automation, when AI is increasingly being applied to AI operations. But few companies have focused on the process of launching a business. Naive has emerged to fill this gap. It deploys AI agents to do so, using its infrastructure along with a customer’s token budget. It then deploys agents to do bureaucratic busywork such as LLC formation. Of course, human operators are still needed for parts of these processes, such as approving applications or signing things. But it takes care of lots of the onerous heavy lifting. This is music to the ears of busy proprietors in the process of launch activities such as hiring, marketing, and ordering. And that demand has translated to growth, to the tune of 10x growth in Naïve’s annual run rate, which now totals low double-digit millions.  And this has quickly attracted investors, landing the company $28.5 million in recent Series A funding led by Nexus Venture Partners. It will use the cash infusion to grow its team and accelerate its product roadmap, including infrastructure and model development.

Header image credit: Etienne Girardet on Unsplash