Kodesage Secures $6.6M Seed Funding for AI-Powered App Modernization
Kodesage, a promising startup focused on legacy code modernization, has announced a successful seed funding round of $6.6 million to accelerate its mission of helping enterprises update their on-premises applications using artificial intelligence. The seed funding round was led by VentureFriends, with key participation from Portfolion and notable angel investors such as Google Scholar Christian Szegedy and German football star Mario Götze.
Modernizing Legacy Systems with AI
Founded by Gergely Dombi, Miklos Szurdi, and Gyorgy Szilagyi, Kodesage is developing an advanced AI platform that enables companies to extract valuable information from the complex code of legacy software systems. This data is organized into a live “knowledge layer,” which can be leveraged to rebuild critical applications in modern programming languages, minimizing risk and simplifying the process. Their approach promises to automate the discovery and documentation of legacy codebases and facilitate migration through context-aware code conversion and automated testing.
According to CEO Gergely Dombi, the inspiration behind Kodesage came from their previous experience running a consulting firm specializing in legacy system modernization. He observed that traditional, human-driven modernization projects were slow and heavily reliant on a small pool of experts. Recognizing the transformative potential of AI, the founders set out to build a solution that could automate and scale the modernization process, making it faster and more repeatable for enterprise clients.
Addressing Challenges in Regulated Industries
Many industries, such as financial services, insurance, healthcare, energy, transportation, and telecommunications, still rely on mission-critical applications developed decades ago. For these organizations, modernizing on-premises software is an enormous challenge, often requiring a complete rebuild and migration to the cloud. This is where Kodesage’s AI-driven technology stands out. Unlike competitors that use cloud-based AI, Kodesage operates entirely within the customer’s environment—whether on-premises, in a virtual private cloud, or in fully air-gapped environments—ensuring sensitive data remains secure and compliant with strict regulatory requirements.
This unique approach not only preserves data sovereignty but also allows customers to enjoy predictable and transparent costs, which are decoupled from variable token consumption models commonly used by other AI modernization services.
Solving the Expertise Gap in Legacy Systems
As many of the original engineers responsible for legacy systems retire, a growing expertise gap threatens the stability and continuity of these essential applications. Dombi points out that software modernization is rarely straightforward, especially in regulated environments where old and new systems must coexist for extended periods. The support burden grows as institutional knowledge fades, making maintenance increasingly difficult and expensive.
Kodesage aims to address this challenge head-on by modernizing systems written in languages like Oracle Forms, PL/SQL, COBOL, PowerBuilder, and RPG. Through AI automation, it not only enables the migration of these outdated systems to modern languages but also streamlines ongoing maintenance, reducing operational pressure on IT support teams.
Vision for Self-Healing Enterprise Applications
Dombi envisions a future where enterprise applications become self-healing systems that can continuously learn, propose, test, and validate fixes automatically. With engineers guiding outcomes instead of writing code from scratch, enterprises can drastically reduce their maintenance workload and focus on innovation.
Expanding Market Reach with Fresh Capital
The newly raised seed funding will be used to accelerate Kodesage’s go-to-market initiatives in the U.S. and Europe. The company also plans to grow its engineering and product teams to further develop its AI platform and deliver on its vision of automated app modernization at scale.
VentureFriends Founding Partner Apostolos Apostolakis expressed confidence in Kodesage’s solution, highlighting its potential to help companies understand, maintain, and modernize complex legacy codebases, starting with Oracle applications. By leveraging AI, Kodesage is poised to save enterprises significant time and cost while reducing dependence on a shrinking pool of legacy system experts.
Conclusion: Transforming App Modernization with Seed Funding
Kodesage’s innovative approach to legacy system modernization, powered by AI and backed by substantial seed funding, positions it as a key player in addressing one of the most pressing challenges faced by regulated industries today. As enterprises continue to seek efficient ways to modernize on-premises applications, Kodesage’s technology offers a secure, scalable, and automated solution that could redefine how businesses manage and upgrade their critical software infrastructure.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.