Kodesage Raises $6.6M Seed Round for Legacy Software Modernization

Kodesage, a Budapest-based enterprise software company focused on legacy software modernization, has raised $6.6M in Seed funding led by VentureFriends, with participation from returning investor Portfolion and angel investors Christian Szegedy and Mario Götze.

Founded by Gergely Dombi, Gyorgy Szilagyi, and Miklos Szurdi, Kodesage develops an on-premise AI platform that helps organizations understand, document, and modernize complex legacy software systems without exposing sensitive code or data to external AI services.

The new capital will support expansion across the United States and Europe while accelerating product development and engineering growth. Kodesage primarily targets regulated industries, including banking, insurance, energy, and government organizations where legacy systems remain critical infrastructure.

The funding reflects a growing reality across enterprise technology: before organizations can fully embrace AI-driven transformation, many still need to understand the software already running their businesses.

What Happened

Enterprise software has a strange habit of becoming invisible right up until something breaks. A payroll system processes millions of transactions. A banking platform moves money every day. An insurance workflow quietly keeps policies active for decades. Nobody thinks much about these systems while they work. Then an engineer retires, documentation goes missing, or a modernization initiative begins, and suddenly an uncomfortable question appears: how does any of this actually work?

That question sits at the center of Kodesage. The company announced a $6.6M Seed round led by VentureFriends, with participation from Portfolion, which previously led Kodesage's €2.3M pre-seed round in 2025. The round also includes angel investors Christian Szegedy, known for his work in artificial intelligence and as a co-founder of xAI, and Mario Götze, the German football star and investor. VentureFriends has built a reputation backing technology startups across software and emerging technology sectors, while Portfolion, the venture capital arm associated with OTP Group, has supported Kodesage since its earliest stages.

Kodesage was founded in 2024 by Gergely Dombi, Gyorgy Szilagyi, and Miklos Szurdi. Dombi and Szurdi previously built Sonrisa, a software engineering company that grew to more than 300 engineers across multiple countries. Szilagyi previously co-founded Tresorit, one of Europe's best-known encrypted cloud storage companies. The leadership team also includes Attila Balogh, VP Engineering, and Peter Gardus, VP Marketing. The company's mission is straightforward: help enterprises understand the software they already own.

Why This Matters

The technology industry loves talking about new software. Investors fund it, founders pitch it, and analysts model it. Meanwhile, some of the world's most important systems continue running on code written decades ago. Banks still depend on legacy infrastructure, insurance carriers operate mission-critical systems that have evolved across generations of developers, energy companies maintain software environments that predate cloud computing, and government agencies often run technology stacks that have survived multiple political administrations.

The challenge is rarely whether these systems work. The challenge is whether anyone fully understands them. Enterprise knowledge has a habit of leaking out through retirement, attrition, acquisitions, reorganizations, and simple human forgetfulness. Documentation becomes stale. Tribal knowledge becomes tribal mythology. Teams inherit systems they did not build and are expected to modernize them anyway.

Kodesage is targeting that gap. Its platform connects source code, documentation, databases, issue-tracking systems, and internal knowledge repositories to create what the company describes as a living knowledge layer. The goal is to make complex systems understandable again. That may sound less exciting than building the next consumer AI application, but it is also where billions of dollars in enterprise spending live.

Market Context

The enterprise AI market is entering a new phase. The first wave focused on generation: generate text, generate images, generate code. The second wave is increasingly focused on understanding. Organizations cannot modernize systems they do not understand, automate workflows they cannot map, or confidently deploy AI into environments where institutional knowledge is fragmented across thousands of documents, tickets, and code repositories.

This creates a significant opportunity for companies operating at the intersection of AI, enterprise infrastructure, and software modernization. Kodesage operates within the emerging category of AI-powered legacy software modernization platforms. The company's positioning is particularly notable because of its deployment model. Kodesage supports on-premise, VPC-capable, and air-gapped deployments, allowing organizations to maintain control over sensitive code and data.

For industries such as banking, insurance, energy, and government, that distinction matters. Security teams rarely get excited about new software. They do get excited about keeping sensitive data where it belongs.

Competitive Landscape

Kodesage operates within the broader software modernization and enterprise knowledge management market, an area attracting growing attention from investors and enterprise buyers. Multiple vendors are attempting to apply large language models to software development workflows. Many focus on helping developers write new code faster. Kodesage is focused on helping organizations understand existing code.

That difference matters. Writing software is only one side of the equation. Maintaining decades of accumulated software assets represents a significantly larger operational challenge for many enterprises. The company's ability to connect documentation, tickets, databases, and source code into a unified knowledge system creates a different value proposition than tools focused solely on code generation.

In practical terms, Kodesage is less concerned with helping developers produce another thousand lines of code and more concerned with helping enterprises understand the millions they already have.

What This Signals

The Kodesage funding round reflects a broader shift in enterprise priorities. For years, modernization discussions centered on replacement. Rip out the old system. Install a new one. Move everything to the cloud. Reality proved more complicated. Mission-critical systems often cannot be replaced overnight because they are deeply connected to business processes, regulatory requirements, and operational workflows.

Understanding becomes the prerequisite for modernization. That makes knowledge extraction, documentation automation, dependency mapping, and system visibility increasingly strategic capabilities. Investors backing Kodesage appear to be betting that enterprise AI's next chapter will involve helping organizations make sense of existing complexity rather than simply generating new content.

The Bigger Industry Shift

Technology history tends to move in cycles. One generation builds systems. The next generation inherits them. The generation after that tries to figure out what everyone before them was thinking. Enterprise AI is rapidly becoming a tool for that third phase.

Kodesage is not chasing the newest application category or consumer trend. The company is addressing a structural challenge inside large organizations: preserving, understanding, and operationalizing knowledge trapped inside software systems. As enterprises push deeper into AI adoption, modernization programs, and automation initiatives, understanding existing infrastructure becomes increasingly valuable.

The future may belong to AI-powered systems, but many enterprises still need help understanding the past before they can confidently build what comes next.