Category Visionaries Shreesha Ramdas, CEO & Co-Founder of Lumber: $21 Million Raised to Transform Construction Workforce Management
Lumber is revolutionizing how construction companies manage their workforce through a comprehensive back-office automation platform. With over $21 million in funding, the company is addressing critical challenges in an industry where 41% of the workforce will retire by 2031, leaving a massive knowledge and labor gap. In this episode of Category Visionaries, we spoke with Shreesha Ramdas, CEO and Co-Founder of Lumber, about his journey from serving the tech industry to tackling one of the most transformation-resistant sectors in the economy.
Topics Discussed:
- Lumber's origin from 200+ customer discovery interviews with construction firms
- The company's focus on back-office automation versus field management
- Lumber's multi-channel marketing strategy emphasizing events and content
- The challenge of change management in construction technology adoption
- How AI is creating new opportunities to modernize legacy workflows
- The company's vision of building a knowledge graph for construction workers
GTM Lessons For B2B Founders:
- Lead with value in customer discovery, not just research requests: Shreesha hired an SDR to set up 200 meetings with construction firms, but didn't just ask for their time. Instead, he offered concrete value - either an industry best practices guide or one year of free service if they helped shape the product. This approach appealed to early innovators who wanted to be part of industry transformation. B2B founders should always answer "what's in it for them" before asking prospects to invest their time in discovery conversations.
- Events require 60-day pre-and-post commitment for success: Lumber generates 30% of its leads from industry events, but Shreesha emphasizes that showing up isn't enough. They start outreach two months before events, targeting previous attendees with promotional activities like free tickets or after-party invitations. During events, they focus on booking demos on-site rather than leaving follow-ups to chance. Post-event, they dedicate 60 days to aggressive follow-up because "those leads age faster than anything else." B2B founders should treat events as 4-month campaigns, not 2-day activities.
- Use AI to solve change management challenges, not just productivity: Rather than forcing manual timesheet users to adopt mobile apps, Lumber uses AI to digitize handwritten timesheets with 94% accuracy. This eliminates the change management barrier while gradually transitioning users to digital workflows. Shreesha noted that change management is "the toughest thing about construction industry" because workers are focused on building, not adopting new tools. B2B founders in traditional industries should use AI as a bridge between old and new workflows rather than demanding immediate behavioral change.
- Position against established category leaders, not alongside them: Lumber deliberately positions itself as the "back office" solution while Procore owns the "field management" category. Shreesha explained that back offices are "always thinly staffed" but "always overwhelmed" with regulatory compliance, payroll complexity, and worker management. Rather than competing directly with Procore's field focus, they created their own category serving CFOs, controllers, and payroll admins. B2B founders should identify underserved buyer personas adjacent to established categories rather than trying to displace category leaders directly.
- Leverage vertical AI opportunities to rewrite industry rules: Shreesha sees AI as the reason construction tech is finally attracting significant investment. The key is using AI to "rewrite the existing rules" rather than just digitizing current processes. For construction, this means taking workflows that have been manual for decades and reimagining them entirely. B2B founders should look for AI applications that fundamentally change how work gets done in their vertical, not just make existing work more efficient.
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