Kodesage Raises $6.6M for AI-Powered Legacy Software Modernisation

Why It Matters

Legacy systems remain critical in regulated industries, and Kodesage’s AI tooling reduces modernization risk and cost, unlocking faster digital transformation for banks, insurers and utilities.

Key Takeaways

• Kodesage secured $6.6M seed to accelerate AI-driven legacy modernization
• Platform supports Oracle Forms, COBOL, PL/SQL, PowerBuilder, RPG
• On-premise deployment meets data residency and compliance for regulated sectors
• Targets banking, insurance, energy, telecom, and public‑sector enterprises
• Funding fuels US/Europe go‑to‑market expansion and product engineering

Pulse Analysis

Legacy software continues to anchor core operations in banking, insurance, energy and other highly regulated fields, yet the talent gap and mounting maintenance costs make modernization a strategic imperative. Traditional approaches rely on manual code analysis and costly re‑engineering projects, often extending timelines and exposing firms to compliance risk. Recent advances in generative AI and large language models have opened a pathway to automate code discovery, documentation, and migration, promising to shrink project cycles and preserve institutional knowledge that would otherwise be lost as senior engineers retire.

Kodesage’s platform differentiates itself by delivering AI‑driven insights entirely within a customer’s own infrastructure—whether on‑premise, in a private cloud, or air‑gapped. This design satisfies stringent data‑residency regulations while still leveraging powerful language models to parse legacy languages like COBOL and RPG. The system builds a dynamic knowledge graph that continuously updates as code evolves, enabling automated test generation, context‑aware code conversion, and AI‑assisted production support. By abstracting the complexities of mixed‑technology stacks, Kodesage empowers IT teams to maintain, migrate, or refactor mission‑critical applications with reduced error rates and faster turnaround.

The $6.6 million seed injection, led by VentureFriends, signals strong investor confidence in AI‑enabled modernization tools. With the capital, Kodesage plans to scale its go‑to‑market engine across the United States and Europe, targeting enterprises that must balance legacy stability with digital agility. As regulatory pressures mount and the cost of technical debt escalates, the market for compliant, on‑premise AI solutions is poised for rapid growth. Kodesage’s vision of self‑healing enterprise applications could set a new benchmark for continuous improvement, positioning the startup as a pivotal player in the next wave of enterprise software transformation.