CoreStory Raises $32 Million In Series A Funding Round

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CoreStory secured $32 million in Series A funding, marking a significant milestone for the AI-driven code intelligence startup. The round was co-led by Tribeca Venture Partners, NEA, and SineWave Ventures, with additional participation from Harrison Metal, Singtel Innov8, Samsung Next, Nimble Partners, and Alumni Ventures. Funds will accelerate product development, expand customer delivery, and enhance AI models to modernize legacy software systems.

Company and Market Context: Founded in San Francisco, CoreStory targets the persistent issue of undocumented legacy code—estimated at trillions of lines powering global infrastructure. CEO Anand Kulkarni emphasized how the platform turns modernization from a cost center into a strategic asset, enabling faster ROI and risk reduction. In a booming AI software market, this round positions CoreStory to capitalize on rising demand for tools that integrate AI with existing tech stacks.

CoreStory’s $32 million Series A funding round represents a pivotal advancement for the San Francisco-based startup specializing in AI-powered code intelligence. This investment not only underscores the growing investor appetite for solutions addressing legacy software modernization but also highlights the strategic imperative for enterprises to adapt aging codebases to the AI era. Below, we delve into the round’s intricacies, the company’s trajectory, market dynamics, and broader implications, drawing on official announcements, investor insights, and industry context.

Overview of the Funding Round

The Series A round raised $32 million, co-led by Tribeca Venture Partners, NEA, and SineWave Ventures—a trio blending enterprise software expertise and deep tech innovation. Additional participants included Harrison Metal (an early-stage fund with a track record in AI infrastructure), Singtel Innov8 (the venture arm of Asia’s largest telecom, emphasizing telco and enterprise tech), Samsung Next (Samsung’s innovation outpost targeting AI and software), Nimble Partners (a seed-stage investor in enterprise SaaS), and Alumni Ventures (a diversified fund leveraging alumni networks).

While post-money valuation was not disclosed—a common practice in AI startups at this stage to maintain flexibility amid rapid tech evolution—the round’s size suggests a valuation in the $100-150 million range, aligned with comparable Series A deals in AI dev tools (e.g., similar multiples to Cursor or Replit’s early rounds). Proceeds are earmarked for three core areas:

• Product Expansion: Enhancing the proprietary model ensembles and agentic workflows that power CoreStory’s platform.
• Customer Delivery: Scaling go-to-market efforts to serve more Fortune 500 clients in high-stakes sectors.
• AI R&D: Investing in advanced intelligence models to handle increasingly complex codebases, including emerging AI-generated code.

This funding arrives at a timely juncture, just months after CoreStory’s public launch in September 2025, amid a surge in enterprise AI adoption. The announcement coincided with heightened scrutiny on legacy systems’ vulnerabilities, exacerbated by recent high-profile outages in aviation and finance.

Historical Funding Context

CoreStory’s funding journey reflects a deliberate build-up from seed-stage validation to Series A acceleration. Prior to this round, the company completed a modest $1.5 million seed investment in May 2023, likely used for initial MVP development and pilot programs. Earlier reports of larger pre-2025 raises (e.g., $40 million in January 2023 or totals exceeding $68 million) appear to stem from data aggregation errors, possibly conflating CoreStory with unrelated entities in the code analysis space; verified sources confirm the seed as the sole prior round.

The table below summarizes CoreStory’s funding history:

This progression—from $1.5 million to $32 million in under 2.5 years—indicates strong early traction, with the Series A representing over 95% of total capital to date ($33.5 million overall). Such escalation is typical for AI startups demonstrating product-market fit, as seen in peers like Anthropic or Adept.

Company Profile and Product Innovation

CoreStory, founded by CEO Anand Kulkarni (a veteran in AI and software engineering, with prior stints at leading tech firms), operates as the “intelligence layer between business requirements and modern software.” Headquartered in San Francisco, the company emerged from stealth in September 2025 with its flagship Code-to-Spec platform, designed to tackle one of enterprise IT’s most intractable problems: the modernization of legacy code.

Legacy systems—predominantly in COBOL, Java, and C#—comprise trillions of lines of undocumented code that underpin critical operations in banking (e.g., transaction processing), healthcare (patient records), and aviation (flight controls). These systems, often decades old, pose escalating risks: maintenance costs exceed $500 billion annually globally, per Gartner estimates, while security vulnerabilities contribute to 30% of major breaches.

CoreStory’s innovation lies in its agentic AI approach, which autonomously interprets code to generate “living specifications”—structured, machine-readable artifacts capturing business logic, architecture, and workflows. Unlike traditional static analysis tools (e.g., SonarQube), CoreStory’s platform enables:

• Risk Reduction: 50% less manual engineering time for migrations.
• AI Integration: Specifications serve as “atlases” for developer tools and AI agents, improving accuracy in code generation tasks.
• Measurable Outcomes: Joint research with Microsoft demonstrated a 51% uplift in AI engineering agent performance when using CoreStory’s outputs versus raw code alone.

This Specification-Driven Development (SDD) methodology extends beyond legacy to future-proof AI-generated code, positioning CoreStory at the intersection of modernization and generative AI.

Recommended: CoreStack Raises $50 Million In Growth Financing From Post Road Group

Investor Insights and Strategic Rationale

The investor syndicate reflects a confluence of interests in AI’s enterprise applicability. Tribeca Venture Partners, known for bets on dev tools like GitLab, views CoreStory as a “cost-to-asset converter” in IT budgets. NEA, with its portfolio in cybersecurity and cloud (e.g., Databricks), praises the platform’s role in recovering “decades of institutional knowledge”.

Notable quotes encapsulate the enthusiasm:

• Anand Kulkarni (CEO): “Every time you swipe a card or make a claim, you’re depending on software written decades ago. Our platform makes that software understandable again and turns modernization from a cost center into a strategic asset.”
• Brian Hirsh (Tribeca): “CoreStory turns the biggest problem in enterprise IT into an AI-solvable one. Their customers aren’t just cutting cost, they’re recovering decades of institutional knowledge.”
• Aaron Jacobsen (NEA): “CoreStory is defining the foundation for agentic-powered software development.”

The participation of corporate VCs like Samsung Next and Singtel Innov8 hints at potential strategic partnerships, such as integrations with Samsung’s AI ecosystems or Singtel’s telecom infrastructures.

Market Landscape and Competitive Positioning

The legacy modernization market is valued at $40 billion in 2025, projected to reach $70 billion by 2030 (CAGR of 12%), driven by digital transformation mandates and AI proliferation. Competitors include established players like CAST Highlight (acquired by Insight Partners) and newer AI entrants such as Endor Labs or Snyk’s AI extensions, but CoreStory differentiates through its agentic focus on “living” specifications rather than mere scanning.

Challenges include data privacy in sensitive sectors and the “black box” risks of AI interpretations, which CoreStory mitigates via auditable workflows. Opportunities abound in regulatory tailwinds, like the EU’s DORA framework for financial resilience, which incentivizes code audits.

Implications and Future Outlook

This round catapults CoreStory into hyper-growth mode, potentially enabling 2-3x headcount expansion and international pilots by mid-2026. It also signals investor optimism in “picks-and-shovels” AI tools—those enabling broader AI adoption—amid a funding environment where AI dev startups captured 25% of Q3 2025 VC dollars.

For enterprises, CoreStory’s success could accelerate a shift from reactive maintenance to proactive AI orchestration, yielding ROI in 6-12 months per early adopters. However, broader adoption hinges on proving scalability across diverse codebases. As Kulkarni noted, the mission is to “future-proof for the AI era,” a goal now backed by substantial firepower.

CoreStory’s Series A is more than capital—it’s validation of a niche yet vital AI application, poised to reshape how the world interacts with its digital foundations.

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