From AutoCAD to AI: How Higharc is Replacing 41-Year-Old Software in a $150 Trillion Market

From AutoCAD to AI: How Higharc is Replacing 41-Year-Old Software in a $150 Trillion Market

AutoCAD launched in 1982. It’s older than the internet, older than Windows, older than most people using it. And it still designs over 90% of all homes built in America.

Most startups would build something easier to adopt—a lightweight alternative, a no-code solution. Higharc did the opposite. They decided to build something so technically complex that only a handful of people in the world could build it.

In a recent episode of Category Visionaries, Marc Minor, CEO and Co-Founder of Higharc, explained why technical complexity became their moat strategy.

The Stagnation Opportunity

AutoCAD isn’t just old—it represents decades of stagnation. “Autocad is 41 years old. Its one of the older pieces of software out there,” Marc notes. “Obviously been maintained and updated over the years, but we haven’t really done things very differently over the last several decades in home building. Meanwhile, the world of web based software has moved forward a whole heck of a lot.”

The gap is massive: desktop software from the early 80s versus modern web applications. Static designs versus dynamic, generative systems. But that gap doesn’t automatically create opportunity. The question is whether you work around the difficulty or use it as strategy.

The Wedge Strategy Decision

Most vertical SaaS companies avoid technical complexity. They take existing horizontal tools—project management, accounting, CRM—and verticalize them for specific industries. It’s faster to build, easier to sell, and lets you get to market quickly.

Marc chose a different path. “We didn’t approach the problem from a let’s leverage pre existing tools and techniques and just verticalize them,” he explains. “We actually took a different route of building software that’s fundamentally unique to the industry with this computer aided design software, and that creates this kind of unique dataset that only we can maintain.”

The comparison he makes is telling. “Maybe the most interesting comparison would be like a toast in that or square with spike to pay. I don’t know what they call them. Point of sale as a kind of wedge. In our case, computer design is that kind of wedge.”

Toast used point-of-sale terminals. Square used card readers. Higharc uses web-based CAD. The wedge isn’t simple—it’s the hardest possible entry point. But that’s precisely why it works as strategy.

Why Hard is Defensible

Building web-based CAD requires capabilities that rarely exist together. You need deep expertise in parametric CAD systems and expertise building complex web applications with modern 3D graphics. “Theres a handful of people in the world who can really do that effectively,” Marc says.

When Marc recruited co-founders, he hunted for specific, rare capabilities. Peter Boyer came from Autodesk with web-based CAD expertise. Michael Bergen brought generative design experience. Thomas came from AAA video gaming with procedurally generated content capabilities.

“I actually went out and recruited each of them based on sort of what I thought we needed in the business,” Marc explains. Six years later, all three remain.

If you need to hunt globally for three specific people just to start building, competitors face the same challenge. The talent scarcity creates the moat.

The Dataset Moat

Technical complexity creates the initial barrier. The real moat comes from what it enables: a proprietary dataset. “Nobody has data about houses the way that we do, and then we can take that data and we can add all kinds of services around it,” Marc says.

This is the wedge strategy insight. CAD isn’t the product—it’s the foundation. Once houses are designed in 3D with structured data, you can build estimation systems, 3D sales configurators, automated blueprints. Each service makes switching harder.

“Yeah. So it’s hard to build, takes some time, but it’s very defensible and it allows for us to have multi decade long relationships with our customers,” Marc explains.

The Tradeoff: Time for Defensibility

Building web-based CAD takes longer than verticalized project management. Recruiting rare talent takes longer than hiring experienced sellers. Creating proprietary datasets takes longer than integrating with existing tools.

But the payoff is proportional. “We’re not selling cheap software, we’re not selling seat based software,” Marc notes. The average contract value is $300,000. Customers stay for decades because switching means abandoning their entire design system.

The technical moat enables the economics that enable patience. You can’t afford years building if you’re selling $50/month SaaS. You can if each customer is worth hundreds of thousands annually.

When Hard Makes Sense

Not every company should optimize for technical complexity. The strategy makes sense when you have: large established markets with legacy software, high switching costs, mission-critical use cases, dataset creation opportunities, and long customer lifecycles.

Higharc hits all five. If you’re building in a nascent market with digital-native buyers and low switching costs, the opposite strategy might work better.

The First Principles Question

Marc’s approach came from his digital manufacturing background. He asked: if we were solving this problem today with modern technology, what would we build?

“How might we solve the problem of design specification, sales, marketing, home building from a first principles perspective, knowing what we know today about 3d graphics on the web and about design systems, right, homes are essentially collections of repeated patterns,” Marc explains.

That thinking led to building something fundamentally new rather than incrementally better. The difference between “AutoCAD but on the web” and “rethinking home design for the web era.”

The Pattern for Other Founders

The lesson isn’t “build hard things.” It’s “understand when technical complexity creates defensibility that justifies the investment.”

If you’re in a market dominated by decades-old software, ask whether that software’s age represents technical debt you can exploit. If building the right solution requires rare expertise, recognize that talent scarcity protects you as much as it challenges you. If your solution creates proprietary datasets that become platforms, the initial complexity becomes the foundation for expansion.

Marc’s bet is that housing—a $150 trillion market—deserves software built with modern capabilities. The age of AutoCAD isn’t trivia. It’s a signal that the industry has been waiting for someone willing to do the hard work of replacing it properly.

That only works if you build something competitors can’t easily follow. For Higharc, technical complexity isn’t a burden—it’s the strategy.