Kodesage raises $6.6M to drag enterprise legacy software into the AI era, without it leaving the building
What happened
Kodesage, a London and Budapest-based startup, secured $6.6 million in seed funding to develop AI-powered software modernization tools. Their platform runs entirely on-premise, focusing on financial institutions like banks and insurers that still rely on legacy systems coded in COBOL and Oracle Forms. The startup’s approach avoids moving sensitive core systems to the cloud, instead bringing AI-driven modernization directly inside company data centers.
Why it matters
Many banks and insurers operate mission-critical software that no current employee fully understands but cannot be replaced easily. These legacy systems have fueled core processes for decades but act as a growth bottleneck. Kodesage’s on-premise AI gives these companies a way to update and understand outdated code without exposing sensitive data or disrupting operations. This caters to industries where strict data privacy and regulatory controls block cloud-based refactoring or migration efforts. The funding reflects investor interest in AI-powered modernization that balances innovation with security and compliance constraints.
What to watch next
It will be important to see how effectively Kodesage’s AI can scale within complex, mission-critical legacy environments that resist change. Adoption rates among banks and insurers will show whether on-premise AI tools can unlock modernization without the risks of cloud moves. Also, watch for competitors addressing the same pain point with different approaches—Kodesage’s all-on-premise model may influence the future of legacy software updates in highly regulated sectors.
AI Quick Briefs Editorial Desk
