Castellum.AI Secures $8.5M Series A to Combat Financial Crime Using AI
Castellum.AI raises $8.5M in Series A funding to enhance financial crime compliance with AI agents, reducing false positives by 94% and review time by 83%.
Financial crime costs the global economy over $2 trillion annually, with compliance teams struggling under outdated systems that generate thousands of false positives daily. Castellum.AI, a leader in AI-driven financial crime compliance, has secured $8.5M in Series A funding to address these challenges. The round was led by Curql, with participation from BTech Consortium, Framework Venture Partners, and existing investors.
The Problem and Solution
Legacy systems force institutions to choose between accuracy and speed, creating bottlenecks in customer onboarding and payments. Castellum.AI’s platform combines in-house AI agents, risk data, and AML/KYC screening to reduce false positives by 94% and compliance review time by 83%. Their proprietary data collection process monitors 200,000+ global sources, updated every 5 minutes.
Founder’s Vision
CEO Peter Piatetsky, a former regulator and compliance executive, founded Castellum.AI after witnessing the inefficiencies in financial crime detection. "In one month, we had 38,000 alerts and only one real risk," he recalls. The company’s explainable AI agents are trained on regulatory guidance from the OCC, NCUA, and NY DFS, and have even passed CAMS practice exams.
Market and Business Model
Castellum.AI serves banks, credit unions, fintechs, and crypto firms with a subscription-based model. Their modular approach allows seamless integration into existing workflows, making them a preferred choice for Tier 1 financial institutions.
Future Plans
The funding will fuel engineering, customer success, and AI agent expansion. Piatetsky advises startups to focus on revenue and partnerships, leveraging NYC’s robust ecosystem. "We’re laser-focused on scaling adoption," he says.
Investor Confidence
Investors were drawn to Castellum.AI’s clear mission, in-house AI, and data capabilities. "We’re not just riding the AI wave," Piatetsky emphasizes. The company aims to become the go-to solution for compliance leaders.
Personal Touch
When not tackling financial crime, Piatetsky enjoys spearfishing and family time at their Rockaways beach spot.
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About the Author
Dr. Sarah Chen
AI Research Expert
A seasoned AI expert with 15 years of research experience, formerly worked at Stanford AI Lab for 8 years, specializing in machine learning and natural language processing. Currently serves as technical advisor for multiple AI companies and regularly contributes AI technology analysis articles to authoritative media like MIT Technology Review.