Abstract Raises $4.8 Million to Give the Public Access to the Levers of Power

Pat Utz, CEO and co-founder of Abstract, found himself confronted with a major flaw in the transparency of legislative processes—a flaw that he couldn’t ignore. While working in California, Utz discovered that although legal requirements called for public access to letters of opposition or support for proposed laws, these letters were effectively out of reach for the general public. The reality was stark: while lobbyists, legislators, and other insiders could easily access these documents, the average citizen had to go to great lengths—requesting paper copies in person at the state capital—to obtain them.

This glaring issue spurred Utz into action. He believed that in a democratic country like the U.S., the public had the right to full transparency regarding the policies and laws that would impact them, their communities, and their businesses. The lack of access to these vital documents, Utz concluded, created a significant imbalance in power and information. And while this problem was especially evident in California, Utz soon realized that most states made it difficult for the public to gain access to this critical information.

This insight became the foundation for Abstract, a company that seeks to address this transparency gap by providing businesses with the tools they need to better understand and manage the risks posed by proposed regulatory changes. Abstract’s AI-powered platform leverages data from over 145,000 government bodies, news channels, and social media sources to flag relevant legislative and regulatory developments, offering tailored insights that help organizations stay ahead of potential challenges.

But the evolution of Abstract wasn’t without its challenges. Initially focused on providing a workflow SaaS tool for lobbyists, the company pivoted as it became clear that large language models (LLMs), such as those used in AI, were commercially viable and could be integrated into the platform. The decision to incorporate LLMs marked a turning point for Abstract, as the team recognized that AI would allow them to offer deeper insights and more refined predictions for regulatory changes.

With a recent infusion of $4.8 million in seed funding, Abstract is set to accelerate its mission of improving regulatory risk management for businesses. Co-led by Bonfire Ventures and Communitas Capital, this funding brings Abstract’s total to over $9 million, providing a boost to the company’s vision of transforming regulatory monitoring into a proactive, strategic advantage. The capital will allow Abstract to enhance its platform, deepening its ability to derive intelligence from disparate data points like draft legislation, public comments, and regulatory discussions.

“Instead of spending inordinate amounts of time manually reviewing changes from legacy bill tracking tools, corporate teams are presented with Abstract’s tailored insights into ‘risks’ and ‘opportunities’ for their businesses, allowing them to be proactive before proposed bills or regulatory changes are finalized,” said Utz. The platform’s AI capabilities have proved instrumental for corporate teams, providing them with a more efficient and comprehensive way to track legislative developments.

Abstract’s platform continuously monitors real-time data to provide businesses with actionable insights. By pulling information from government bodies, news outlets, and social media, the platform flags developments that are directly relevant to the user’s business, helping them stay informed and agile in the face of regulatory changes.

The significance of Abstract’s work is especially apparent in the context of ongoing shifts in regulatory policies. As new administrations promise deregulation across multiple sectors—financial services, energy, transportation—companies are under increasing pressure to remain compliant while also managing risk. Tom Glocer, co-founder and general partner at Communitas Capital, emphasized the critical timing of Abstract’s solution, stating, “Abstract’s solution comes at a crucial time for enterprises as the incoming administration promises deregulation across numerous sectors, including financial services, energy, the environment and transportation.”

AI’s role in regulatory compliance is becoming increasingly prominent. Rather than treating compliance as a burdensome requirement, businesses are learning to leverage AI as a strategic asset. AI-driven platforms like Abstract’s allow organizations to meet regulatory standards efficiently without sacrificing performance elsewhere. As reported by PYMNTS in November, AI is transforming compliance from a manual, resource-intensive task into a more streamlined, efficient process.

The journey that led Abstract to this point wasn’t simple or fast. In 2022, the company made a pivotal decision to evolve from its original product—a workflow SaaS tool for lobbyists—into a fully AI-powered solution. As large language models (LLMs) became commercially viable, Abstract recognized an opportunity to integrate this emerging technology into their platform, which ultimately led to the creation of the first AI Regulatory Task Force. This transition was far from easy, requiring the team to rebuild the platform from the ground up.

Utz reflected on this transformation, saying, “My favorite life lesson quote is from my father and is ‘paso a paso.’ In English it means ‘step by step.’ To me, it is a mentality that no matter how big of a task I have, or how much stress I might be under, I just need to remember that anything can be tackled step by step.”

This philosophy became a guiding principle for Abstract’s journey, particularly as the company worked through the complexities of integrating LLMs into their platform. What started as a straightforward workflow tool for lobbyists evolved into a far more powerful and comprehensive AI-driven solution.“AI can transform compliance from a burdensome requirement into a more manageable, strategic advantage, empowering businesses to meet regulatory standards without compromising on efficiency or cost in other areas,” Utz said, underscoring how Abstract’s AI-driven approach is reshaping the regulatory risk management landscape.

Since its founding, Abstract has worked with over 200 organizations, providing them with the insights they need to manage regulatory risk effectively. With the new funding, Abstract is looking to expand its impact, helping even more businesses across various industries anticipate and respond to regulatory changes with greater ease and confidence. Reflecting on the company’s progress, Pat noted, “Paso a paso, we continue to evolve our platform and take on new challenges. It’s been a long journey, but with this new funding and our commitment to AI-driven solutions, we are ready for the next step.”