Construction Compliance Automation: Levels and the Impact on Italian Building SMEs

Construction compliance automation is emerging as a concrete response to the challenges that limit SMEs in the construction sector: managing documents, certifications, and regulatory obligations required by tenders and public contracts. Levels, a startup founded in Milan in 2024, began from an analysis of how technology can automate this path, starting from an initial consult in the field of genAI and turning it into a solution that aims to streamline compliance processes for subcontractors thanks to artificial intelligence. Although it may seem a prudent choice, the goal is clear: make compliance management less burdensome and more reliable, with tangible impacts on revenue.

Starting from the problem

Turning in this direction wasn't a decision made at the table. After successfully solving a request from a company in the construction site sector, the team realized that compliance is the weak point for participating in public tenders with large clients. Following a customer-centric logic, Levels decided to move quickly: within six months they had accumulated over 160,000 ARR (annual recurring revenue) in annual subscriptions, and today they serve 16 construction companies representative of the sector. "Going around Milan and seeing the names of our clients or of companies we've contacted on the crane towers is the tangible measure of the impact of our solution on the real world," said Tommaso Lucarelli, CEO of Levels.

The choice to do business in Italy

The story of the four cofounders of Levels - all graduates in Computer Engineering from Politecnico di Milano with complementary training in Data Science - tells a trajectory focused on curiosity, international training, and practical spirit. After an internship at Amazon in Luxembourg as a Business Intelligence Engineer, the choice to return to Italy was guided by the desire to help the country's companies, leveraging a network built over time. Today the staff is nine people full-time, with hiring plans for two additional roles. The team is developing with a culture still very close to the university world: intense work, high responsibilities, and autonomous decision-making. The cofounders have invested time in developing a platform that could accompany small construction sites in the compliance journey, reducing the document load and facilitating management of a volume of obligations that often concentrate in the evening hours or weekends.

Ambitions don't end here

Today Levels positions itself in the upper-middle tier of the construction technology market, but the horizon remains ambitious: the goal is not only to automate part of the process, but to address the management of all necessary documents, often heavy for small realities with three or four workers. The idea is to offer a digital service for phone or PC that allows managing document compliance with minimal effort, and at the same time develop more sophisticated services for large operators. The underlying motto is upload once, comply everywhere, in other words, upload a document once and share it whenever needed. The real revolution, therefore, is to treat data differently and more efficiently.

How and when to grow

From an investment standpoint, Levels has followed a typical startup path: initial bootstrap, then input from angel investors. Some of them are part of the advisory board and provide mentorship on product and technology. In Italy there are no shortages of funds for the preseed phase, but the next phase presents challenges related to investment maturity and a greater need for capital for growth. Like many Italian entrepreneurs, the founders recognize the value of Italian structures and the necessity to balance Italian interests and international opportunities, noting that when the business is going well, foreign financiers often seek to guide it beyond borders. The Italian experience is seen as a solid foundation for building a sustainable and replicable model over time.

A debate on the Italian model

The discussion on how to valorizate Italian startups in the European context raises several questions: how important are local networks and proximity to domestic investors versus access to foreign funds? How can companies grow while maintaining ownership and taxation within the territory? What is the right balance between growth speed and protecting SMEs in the industrial fabric? On one side, there are those who argue that Italy offers a favorable environment for sustainable growth, with a strong network of companies, universities, and innovative hubs like Talent Garden. On the other side, there are those who warn about the risk of moving resources abroad to accelerate growth, with possible social and territorial costs. Italian startups, like Levels, show that it's possible to build solid business models even in a domestic context, but a combination of public support, targeted private investments, and a culture of entrepreneurship that rewards merit and execution capability remains essential. In this scenario, attention to topics like compliance, document management, and the digital transition can become a true driver of competitiveness if accompanied by governance and adequate capital. However, it's crucial to avoid empty technological promises and focus on concrete metrics: ARR, number of customers, adoption rate, reduction of administrative burden for subcontractors, and average processing time of the documentation. Moreover, it's vital to have authoritative sources to validate market data and growth projections, so as to offer a solid basis for founders and investors. In short, Italy can be fertile ground for innovation and new technologies if pragmatism, international talent, and targeted support for small businesses coexist.

A concrete perspective for founders

Looking at the Levels case, the key takeaway is simple: start from a real problem, quickly test a solution, and measure the impact on the real world. For founders working in applied AI, the lesson is clear: innovation is not just about technology, but about operational effectiveness and the ability to scale a business model in a complex industrial fabric. The combination of local advantages and global opportunities requires a clear strategy: invest in talent, build alliances with companies and institutions, and keep focus on concrete KPIs that guide growth over time. Moreover, a long-term vision like upload once, comply everywhere can open deeper digital service scenarios, with real value for SMEs and a competitive position for the company.

Toward increasingly efficient compliance management

In closing, the Levels experience shows there are real margins to transform a peculiarity of the construction sector into a lever of innovation and growth. The path isn't easy; it requires a mix of technical competencies, understanding of site needs, access to capital, and a supportive ecosystem that favors startups focused on scale-up. For those looking to the future, the invitation is clear: focus on solutions that improve efficiency, transparency, and traceability of documents, keeping at the center the impact on the customer and the sustainability of the business.

Fonte startupitalia.eu