Kodesage, a Budapest-based AI platform for understanding and modernizing complex legacy software systems, has raised $6.6M in seed funding led by VentureFriends. The platform connects codebases with documentation, tickets, databases, and wikis to deliver natural language Q&A, automated documentation, and visual diagrams through secure on-premise or VPC deployments.
The capital will fund US and European go-to-market efforts plus engineering and product hiring.
Legacy AI Funding Aligns With Market Shift
The timing comes amid rising demand for AI tools that handle legacy code in regulated sectors. GFT launched an AI-powered legacy modernization offering in 2026, while broader industry players expand capabilities in code analysis. Kodesage's approach focuses on on-premise deployments that keep sensitive code and data within enterprise boundaries.
Retiring Experts Leave Knowledge Gaps
Enterprises spend 40–60% of IT budgets maintaining legacy systems built in COBOL, Oracle Forms, RPG, and PL/SQL. Institutional knowledge vanishes as experienced engineers retire, slowing modernization projects and raising compliance risks for banks, insurers, governments, and healthcare providers.
On-Premise Knowledge Layer Connects Silos
Kodesage builds a living knowledge graph that pulls from code, documentation, tickets, and databases. Unlike general AI coding assistants or broad IT services, it supports non-engineers through conversational interfaces and maintains air-gapped options for strict compliance environments.
Mission Capital Backs Secure Enterprise AI
VentureFriends led the round with participation from Portfolion, which previously backed the company at pre-seed. Angels include Christian Szegedy, co-founder of xAI, and footballer Mario Götze. The mix signals conviction in early-stage European AI infrastructure for heavily regulated industries.
Legacy Market Expands Rapidly With AI
The legacy modernization market stands at $29.39B in 2026 and is projected to reach $66.21B by 2031 at a 17.64% CAGR, according to Mordor Intelligence. AI-driven code discovery and documentation generation drive the growth as enterprises seek alternatives to costly rip-and-replace projects.
Hiring Push Signals US and Europe Expansion
With the new funding, Kodesage plans to expand its engineering and product teams across the US and Europe while advancing go-to-market activities. The company recently presented at Oracle user events and launched a Chat API for embedding its capabilities.
As CEO Gergely Dombi noted in coverage:
"The most important software in a bank is often the software nobody fully understands any more."
The round positions Kodesage to capture demand for secure AI that preserves institutional knowledge without exposing code to external clouds.