Algoma Raises $2.3 Million Seed Round to Advance AI-Driven Sustainable Building Design
New York-based proptech startup Algoma, which positions itself as a digital architect and engineer for sustainable buildings, has secured $2.3 million in a seed funding round led by Zacua Ventures, bringing its total capital raised to $4.3 million across four rounds. The company is developing AI-powered tools to help decarbonize the built environment by reducing the complexity and cost of sustainable building design.
Software as Infrastructure for Sustainable Building
Founded in 2023 by Josef Bromovsky, Algoma is building what it describes as a digital engineer—a platform that automates building system design with a focus on energy performance and carbon impact. Instead of functioning as a plug-in or dashboard, Algoma is creating a foundational platform layer that enables developers, engineers, and architects to rapidly simulate and optimize building envelopes, mechanical systems, and operational performance. The goal: decarbonize construction without compromising cost or speed.
The startup’s thesis rests on reducing reliance on human-intensive modeling workflows that dominate today’s architecture, engineering, and construction (AEC) ecosystem. In a sector where high-performance building design often comes at a cost premium, Algoma sees an opportunity to use automation to compress design time and democratize access to net-zero outcomes—especially in mid-market and high-growth urban areas.
A Consolidated Seed Strategy
The latest $2.3 million seed round, closed on May 15, 2025, was led by Zacua Ventures, with participation from earlier backers including SOSV, Iron Prairie Ventures, DOMiNO Ventures, and HAX. The round follows a $1.9 million raise in November 2024 and earlier contributions from accelerator-stage funding and undisclosed investors.
Rather than a single fundraising event, Algoma’s seed round reflects a deliberate capital stacking strategy, gradually aligning long-term investors with its deep-tech vision. This approach mirrors capital formation strategies in deep climate and hard-tech startups, where early product-market fit is coupled with patient capital for R&D-intensive innovation.
The Frontier of AEC Automation
Algoma is emerging in a broader wave of “design-tech” startups focused on embedding intelligence directly into building design and simulation. In contrast to traditional energy modeling tools or off-the-shelf BIM solutions, Algoma’s approach is system-level, aligning mechanical, electrical, and structural design with performance outcomes from the outset.
As cities and developers face increased scrutiny over embodied and operational carbon emissions, startups like Algoma are well-positioned to become the intelligence layers behind climate-forward design mandates. The company’s platform has the potential to integrate with permitting systems, prefab workflows, and energy code compliance tools—shifting AI from an assistant to a co-designer in building innovation.
