London-based Curvestone AI has secured $4 million in seed funding to advance its mission of providing dependable AI automation for regulated industries. Led by MTech Capital, the investment follows a period of significant organic growth where the company achieved profitability and a sevenfold revenue increase. The capital will fuel expansion in the financial services, legal, and insurance sectors.
Addressing AI's Compound Error Problem
A critical barrier to AI adoption in regulated fields is the "compound error problem," where accuracy degrades significantly in multi-step workflows. A process starting at 98% accuracy can fall to 30% after a dozen steps, rendering it unreliable for critical tasks. This makes many standard AI tools unsuitable for document-heavy processes in finance and law.
Curvestone AI's platform is engineered to solve this issue by maintaining stable, high-level accuracy from start to finish. Founded by industry veterans Dawid and Sebastian Kotur, the technology provides the control and auditability essential for compliance. This focus on dependability enables true automation for complex, regulated operations that demand precision.
Demonstrating Market Traction and Impact
Before accepting external capital, Curvestone AI proved its business model by bootstrapping to profitability and achieving 7x revenue growth in 12 months. The company now processes billions of tokens quarterly, demonstrating strong market demand for its solution. This early success highlights the urgent need for reliable AI automation in regulated sectors.
The platform's value is demonstrated through significant client results, including helping law firm Walker Morris cut review times from four hours to 15 minutes. Wealth manager Pivotal Growth is now able to review 100% of its mortgage files, a substantial increase from its previous 10% spot-checking. These outcomes showcase tangible improvements in efficiency and compliance.
Investor Confidence and Strategic Vision
The investment was led by MTech Capital, with partner Kevin McLoughlin joining Curvestone’s board of directors. McLoughlin praised the company for solving the hard technical problem of achieving high accuracy in complex workflows. He also commended the founders for their impressive achievement of bootstrapping to profitability before seeking external funding.
CEO Dawid Kotur emphasized that precision is non-negotiable in financial services, where approximation is a deal-breaker. He explained that effective AI eliminates the difficult choice between exhaustive, costly reviews and risky corner-cutting. Curvestone allows firms to automate routine validation at scale, freeing experts to focus on complex judgment calls.
A Roadmap for Future Growth
The new capital will be used to accelerate product development and expand the company's go-to-market strategy. This includes growing its library of proven, pre-built workflows for various regulated tasks. The funding will also support deeper integrations with core business systems like CRMs and document management platforms.
This $4 million funding round marks a significant milestone for Curvestone AI, validating its unique solution for high-stakes industries. With a proven product, strong client results, and experienced investor backing, the company is poised to set a new standard for automation. Its commitment to trustworthy AI promises to drive meaningful transformation across the financial, legal, and insurance sectors.