Kodesage raises $6.6 million in new capital to modernize mission-critical legacy systems with local AI

On-premise AI platform Codesage, which helps companies understand, document and modernize mission-critical legacy systems, today announced that it has raised $6.6 million in new capital in a round led by VentureFriends. The money will be used for market investments in Sweden, among other countries, where there is already great demand. The existing investor from the company's pre-seed round, The portfolio, participated, together with high-profile business angels such as Christian Szegedy, co-founder of Elon Musk's xAI, and Mario Gotze, German footballer and world champion.

Kodesage was founded in 2024 by software entrepreneurs Gergely Dombi, Miklos Szurdi and Gyorgy Szilagyi. The company helps organizations make information buried in complex legacy system environments visible and transform it into a living knowledge base that enables manage and migrate business-critical systems with lower risk.

Codesages technology is developed for heavily regulated industries such as banking, insurance, energy, transportation, telecom and the public sector, where core business processes still rely on software built decades ago. The platform is designed to run entirely in the customer's own environment, so that sensitive code and data do not have to leave the organization's control.

The new capital will be used to strengthen Kodesage's market focus in Europe and the US as well as for continued investments in the company's engineering and product teams.

– Modernizing business-critical IT systems is rarely a linear process. In regulated businesses, old and new systems often coexist for many years, while knowledge about the systems gradually disappears. This creates growing pressure on the IT organization, in the multi-billion dollar class. Kodesage's platform helps teams understand and modernize these systems faster, resolve incidents and reduce recurring problems with the help of AI, says Gergely Dombi, co-founder and CEO of Kodesage.

Kodesage is built for legacy systems that are still widely used, where business logic exists not only in the code itself, but also in database schemas, stored procedures, and configurations, for example. This is common with systems like Oracle Forms, PL/SQL, COBOL, PowerBuilder, and RPG. The platform extracts and structures that information into a living knowledge store that can be used for analysis, documentation, testing, migration, and AI-powered support.

Because the solution runs entirely in the customer's own environment – locally, in a virtual private cloud or completely isolated where required – even businesses with high demands on security, data sovereignty and regulatory compliance can use the technology without sensitive code or data leaving the organization's control.

“Our vision is self-healing business applications: systems that can continuously learn, propose, test and validate solutions, where engineers control the outcome instead of diagnosing problems and writing code from scratch. For companies in regulated industries, where support teams have been living under growing operational burdens for many years, this is where the greatest value lies,” says Gergely Dombi.

– Many companies globally struggle with maintaining and upgrading mission-critical systems that run on-premises. With Oracle applications as a starting point, Kodesage can help companies understand, manage and modernize complex and often undocumented code bases. This saves both time and costs, while reducing the dependence on specialists who are about to leave the workforce. Gergely, Gyorgy and Miklos have deep experience in the field, and we are very excited to support them on their journey, says Apostolos Apostolakis, founder and partner at VentureFriends.