For investors & operators
Permitly is a $99–$199/mo permit preparation tool that catches application errors before the city does — saving small contractors $14,000+ per delayed project.
Here's the market, the model, and what it takes to build it.
The Market
Post-COVID permit backlogs remain elevated across major US metros while municipal offices stay understaffed — Austin's median plan review is 45 days, LA's is 190 days. IRA and CHIPS Act construction spending keeps permit volumes high. Meanwhile, two well-funded competitors (PermitFlow $91M, GreenLite $69M) have moved firmly upmarket to enterprise commercial. The small contractor and homeowner segment is almost entirely unserved by software.
The Product
Permitly reads your project details, selects the jurisdiction-correct forms for your city, pre-fills everything it knows, then runs a completeness check against city-specific rejection patterns before you submit. Contractors pay $199/month for unlimited permits. Homeowners pay $99 per permit. The product catches the completeness errors that cause 35% of first submissions to fail — eliminating the 2–8 week rejection cycle that costs small contractors $14,000 per incident on average.
Business Model
At 1,000 contractors: 98% gross margin. ~$4/permit COGS. $3,058 LTV per contractor.
Unit Economics
| Metric | Value |
|---|---|
| Contractor subscription | $199/mo |
| COGS (AI + infra per permit) | ~$4 |
| Gross margin | ~98% |
| LTV (contractor, 18mo avg) | $3,058 |
| CAC (outbound + referral) | $150 |
| LTV:CAC ratio | 20:1 |
| CAC payback | 1.1 months |
| Year 1 revenue | $252K |
| Year 2 revenue | $1.25M |
| Year 2 net profit | $587K |
| Break-even month | Month 9 |
| Bundle LTV (w/ TradeBooks) | $8,147 (+104%) |
Traction & Status
Honest. Dated. No spin.
- ✅ Market validated — PE score 6.7/10, FUND verdict
- ✅ POC site built and live
- ✅ Competitive research: SMB segment confirmed unserved
- ⬜ Austin permit database built
- ⬜ AI pre-check engine (15 rejection triggers)
- ⬜ 20 contractor beta users in Austin
- ⬜ Accela API partnership signed
- ⬜ $20K MRR
Path to Product
| Phase | Timeline | Cost | Go signal |
|---|---|---|---|
| Phase 1 Single-City MVP | Month 1–3 | $12,000 | 20 paying contractors in Austin |
| Phase 2 3-City Expansion | Month 4–6 | $8,000 | 100 contractors, <15% churn |
| Phase 3 Per-Permit Scale | Month 7–9 | $7,000 | 500 homeowner permits processed |
| Phase 4 Accela Partnership | Month 10–12 | $8,000 | 25+ cities, $20K MRR |
Capital Ask
$35,000
| Use of funds | Amount |
|---|---|
| Engineering — 3-city permit data + AI integration | $12,000 |
| Accela API partnership / data acquisition | $5,000 |
| Marketing & contractor acquisition (city 1) | $10,000 |
| Legal — licensing review, 3 states | $5,000 |
| Operating reserve | $3,000 |
Timeline: 12 months to $20K MRR and 25+ cities live.
What We Need
We're looking for an operator with construction industry relationships — ideally someone who has run a trade business or worked closely with GCs and knows the permit pain firsthand. We have the AI, the product thesis, and the engineering capability. We need: intro access to 50 contractors in one metro for the initial beta, and the credibility to say "this was built for how you actually work." Not looking for pure financial capital without an industry network — the data advantage comes from contractor relationships, not code.
Deep Dives
For engineers, operators, and detail-oriented investors.
Market sizing, competitive landscape, financial model, PE scorecard (6.7/10).
4-phase roadmap with deliverables, costs, and go signals.
Interactive demo of the contractor permit tracker and AI pre-check interface.
Dual-revenue: $99/permit for homeowners, $199/mo contractor subscription.
Interested in this? Let's talk.
Tell us who you are and what you bring. We'll respond within 24 hours.
Get in TouchNLT Labs builds 2–3 POCs per week. See our full portfolio at portfolio.nltlabs.ai