Kodesage Secures Funding for On-Premise AI in Software Modernization

Kodesage, an emerging startup in the technology landscape, has announced the closure of a $6.6 million seed funding round. The investment, led by VentureFriends with participation from existing investor Portfolion and prominent angel investors such as Christian Szegedy (xAI co-founder) and German footballer Mario Götze, is earmarked to support the development of an AI platform specifically designed for modernizing legacy software in on-premise environments.

Founded in 2024 by Gergely Dombi, Miklos Szurdi, and Gyorgy Szilagyi, Kodesage aims to address one of the most complex challenges for large enterprises: the management and updating of software systems built decades ago. These systems, often critical for daily operations, represent a significant burden in terms of cost and complexity, especially with experienced engineers retiring and the consequent loss of institutional knowledge.

The Platform: Functionality and Technical Scope

Kodesage's platform has been developed to help companies understand, document, and modernize complex legacy software systems. Its operation is based on extracting information from source code and existing documentation, creating a continuously updated knowledge layer. This enables teams to maintain, migrate, and support mission-critical applications with greater efficiency and reduced risk.

The solution is capable of analyzing a wide range of technology stacks, both modern and legacy, including Oracle Forms, PL/SQL, COBOL, PowerBuilder, and RPG. It automates crucial tasks such as codebase discovery, documentation generation, context-aware code conversion, test creation, and AI-assisted production support. This targeted approach allows organizations to overcome the technical and human barriers that often hinder modernization processes.

Data Sovereignty and On-Premise Deployment: A Competitive Advantage

A distinctive aspect of Kodesage's offering, particularly relevant to the AI-RADAR audience, is its emphasis on data sovereignty and regulatory compliance. To meet data residency and compliance requirements, the platform operates entirely within customer-controlled environments. This includes on-premise deployments, virtual private clouds, or fully air-gapped configurations.

This architecture allows organizations to leverage AI-powered tools while keeping source code, databases, and business-critical information within their own infrastructure. Such flexibility is crucial for highly regulated sectors like banking, insurance, energy, transportation, telecommunications, and the public sector, where data security and control are paramount, and the Total Cost of Ownership (TCO) of cloud solutions can be prohibitive or non-compliant.

Future Prospects and Market Impact

Kodesage plans to use the new funding to expand its go-to-market efforts across the US and Europe, while continuing to invest in product development and engineering. The company's long-term vision is to enable self-healing enterprise applications capable of continuously learning, testing, and validating improvements with human oversight.

As highlighted by Gergely Dombi, co-founder and CEO of Kodesage, software modernization is rarely a straightforward process, especially in regulated contexts where legacy and modern systems often need to coexist for years. Kodesage's approach, based on AI and infrastructural control, positions itself as a strategic solution for companies seeking to accelerate modernization, reduce operational complexity, and improve support, while maintaining full control over their digital assets.