Kodesage, a company specializing in AI-based solutions for legacy software modernization, announced it raised €2.3 million in pre-seed funding led by PortfoLion Capital Partners and with participation from prominent angel investors, including former UiPath executives.
Kodesage’s AI-based platform streamlines modernization, accelerates employee onboarding, and ensures compliance and data security for enterprises. With paying customers and active pilots, the funding will accelerate platform development and support the company’s mission to empower enterprises to enhance their most complex legacy systems.
Kodesage looks to tackle a critical challenge in enterprise IT: understanding, maintaining, and modernizing legacy systems. These systems, which are deeply embedded in enterprise workflows, present significant risks, including outdated technology, poor documentation, dependence on key employees, and performance issues. Enhancing them is crucial for organizations to remain competitive, as outdated systems can hinder performance, increase security vulnerabilities, and drive up maintenance costs.
KodeSage’s platform stands out with its lower hardware requirements than others, enhancing cost efficiency for companies. It is model agnostic – not just utilizing the latest language learning models (LLM) – but also enabling clients to choose preferred models. Plus, Kodesage generates a proprietary knowledge graph from diverse sources including codebases, database schemas, past tests, issue tickets, wikis, and existing documentation. The firm’s approach to language-specific parsing also significantly improves LLM performance, especially when dealing with complex legacy codebases.
Kodesage’s founding team has decades of experience with enterprise IT modernization and software development. And co-founders Gergely Dombi and Miklos Szurdi built Sonrisa, a 300-person consultancy specializing in legacy systems. Gyorgy Szilagyi co-founded the encrypted collaboration platform Tresorit (exited in 2021) and adds proven expertise in creating secure, enterprise-grade software. This expertise has shaped Kodesage’s mission: to deliver an AI-based platform that addresses the unique challenges of maintaining and upgrading legacy systems while minimizing costs and risks.
With paying customers already on board and multiple pilots underway, Kodesage will use the funding to enhance its platform and scale its go-to-market efforts. And the company’s goal is clear: to empower enterprises to bring their most challenging legacy systems to the next level and unlock new growth opportunities.
For now, Kodesage is creating tools to assist human beings in navigating such systems. But these tools are designed with the future in mind, laying the groundwork to eventually empower code agents to navigate and optimize codebases autonomously.
KEY QUOTES:
“At Kodesage, we believe understanding and modernizing legacy software shouldn’t feel like an endless uphill battle. Our AI-powered platform empowers teams to simplify and secure modernization efforts, allowing organizations to focus on building future-ready solutions instead of wrestling with technical debt.”
– Co-founder & CEO Gergely Dombi
“We’ve seen thousands of teams over the past two decades helping enterprises with their modernization efforts, focusing on what was productizable before the current generative AI wave. The AI toolkit that has emerged over the past two years has now opened up a new, even more painful part of the legacy stack for modernization in a venture-scalable way. We couldn’t be more excited to team up with such a perfectly assembled founder team—György, Gergely, and Miki—to tackle this incredible opportunity.”
– Márk Pálfalvi, Principal at PortfoLion
“Legacy systems are outdated and painful to manage, yet they’re still mission-critical for enterprises. Replacing them outright is often impossible due to high costs and risks. That’s where Kodesage comes in: our technology empowers businesses to enhance and evolve these systems without the massive upheaval of full replacements”
– Gergely Dombi, Co-founder and CEO of Kodesage
“This is just the beginning. We’re excited to help enterprises break free from the constraints of legacy systems and unlock new opportunities for innovation.”
– Gergely Dombi, Co-founder and CEO of Kodesage
“Understanding legacy systems can be an incredibly time-consuming task for engineers, often pulling them away from more impactful work. By leveraging LLMs, we can simplify this process, freeing them up to focus on innovation and delivering value instead of untangling outdated code.”
– Gergely Dombi, Co-founder and CEO of Kodesage
