CoreStory has raised $32 million (€27.5 million) in a Series A round. The company uses AI to analyze and document legacy code. This should enable companies to modernize their outdated software more quickly and securely.
According to CEO Anand Kulkarni, legacy code is one of the most expensive challenges in enterprise technology. “Every time you swipe a card or make a claim, you’re depending on software written decades ago that few people understand,” he says.
CoreStory addresses a significant problem in the enterprise world. Many companies still run on legacy code that no one understands anymore. Think of systems for social security, healthcare, banking, and defense.
The problem is exacerbated by the rise of AI-generated code. Every month, billions of new lines of code are added, often without clear documentation. This presents companies with a double challenge: modernizing what they already have and managing what AI produces.
Code-to-Spec: the solution
CoreStory solves this with agentic AI that extracts business logic and architecture from old applications. The system converts opaque code into usable specifications. According to the company, customers reduce their development time by 50%. Automated processes eliminate manual documentation and validation.
These systems often contain millions of lines of code without documentation. Modifications are risky and modernization is costly. The platform works with the company’s Code-to-Spec agent. Foundation models can generate code, but they struggle with large, interconnected systems. CoreStory’s agent automatically interprets millions of lines of code and converts them into living requirements. Developers and AI agents use these as an atlas for code.
Future-proof development
Joint research with Microsoft shows that using these structured specifications improves AI agent accuracy by 51%. This shortens modernization processes and reduces project risks for enterprise customers.
CoreStory introduces Specification-Driven Development with its approach. This method ensures that all software—whether legacy or AI-generated—remains based on explicit, machine-readable specifications in natural language. By extracting specifications from existing systems and integrating them into modern workflows, business intent and technical implementation remain aligned throughout the software lifecycle.
With the fresh funding, CoreStory aims to accelerate its mission to make corporate infrastructure understandable again. The focus is on tackling legacy code that still powers critical systems today. At the same time, the company wants to make organizations future-proof for the AI era.
Tip: CoreStory launches AI platform for modernizing legacy code