SendTech Times
AIFunding|June 5, 2026 at 03:11 AM
FUNDING GAP:

Kodesage Raises $6.6M for AI Legacy-Code Modernization in Regulated Sectors

Article summary

Kodesage closed a $6.6 million seed round to expand an AI platform for modernizing on-premises legacy software. VentureFriends led the round, with Portfolion participating, as the company targets regulated sectors that keep critical workloads inside controlled environments. The practical test is whether Kodesage can turn code discovery, documentation and conversion automation into named customer deployments across the U.S. and Europe.

Kodesage Raises $6.6M for AI Legacy-Code Modernization in Regulated Sectors
Image source: SiliconANGLE

Seed Funding for Legacy-Code Modernization

Kodesage has raised $6.6 million in seed funding to expand an artificial intelligence platform built for enterprises that still run mission-critical software on older on-premises systems.

VentureFriends led the round, with Portfolion also participating.

The company said the money will support go-to-market plans in the U.S. and Europe while expanding its engineering and product teams.

The startup's platform is designed to extract information from complex legacy codebases, maintain documentation and support migration work through context-aware code conversion and automated test development.

Gergely Dombi, Kodesage's co-founder and Chief Executive, said he built the company with Miklos Szurdi and Gyorgy Szilagyi.

The founders had earlier run a software consulting business of more than 300 people that focused on legacy modernization.

Regulated Workloads Shape the Product Angle

Kodesage is aiming at highly regulated industries including financial services, insurance, healthcare, transportation and energy, where older on-premises applications can remain central to daily operations.

The company's pitch is not only that AI can help translate or rebuild code, but that the work can happen inside the customer's own environment.

The platform can operate on-premises, in virtual private clouds or in fully air-gapped clouds.

That design matters for companies that cannot expose business logic stored in databases to public cloud services for regulatory reasons.

It also gives Kodesage a cost-control argument because the company says customers can avoid modernization costs tied directly to token consumption.

Dombi framed the problem as an operational pressure point for support teams as experienced maintainers retire.

"Software modernization is rarely clean-cut," he said, adding that legacy and new systems can coexist for years while institutional knowledge thins out.

Customer Proof Is the Next Test

Kodesage says its tools can help modernize systems written in PL/SQL, COBOL, PowerBuilder and RPG code, with rebuilt applications moving into more modern programming languages.

Dombi described a longer-term product direction in which enterprise software would help teams learn from systems, propose fixes, test changes and validate outcomes while engineers guide the work.

The funding round does not prove that regulated enterprises will hand over core modernization work to AI systems.

It does show investors backing a more controlled version of enterprise AI adoption, where the value sits in reducing support bottlenecks without moving sensitive software assets into public cloud environments.

VentureFriends Founding Partner Apostolos Apostolakis said many enterprises are struggling to maintain and upgrade on-premises legacy systems.

He said Kodesage is beginning with Oracle applications and can help companies understand and modernize complex undocumented codebases.

The practical test is whether the startup can convert seed-stage funding and regulated-industry positioning into named customer deployments, repeatable modernization projects and clearer proof of cost control as it expands across the U.S. and Europe.

Share this article
inXf

Related articles

More
Salesforce opens Headless 360 as AI agents push enterprise software beyond the browser
AI

Salesforce opens Headless 360 as AI agents push enterprise software beyond the browser

Salesforce Japan described Headless 360 as a way for external interfaces and AI agents to directly access Salesforce assets through APIs, MCP and CLI tools. The briefing connected Headless 360 with prior Agentforce 360 customer uptake. In Japan, the key test may be whether IT service vendors and partners treat the platform as a preferred toolkit.

Coralogix's $200 Million Round Puts AI-Agent Monitoring on the Enterprise Watchlist
AI

Coralogix's $200 Million Round Puts AI-Agent Monitoring on the Enterprise Watchlist

Coralogix raised $200 million in Series F financing to expand software-monitoring tools for AI-agent operations. The round valued the company at $1.6 billion post-money and brought total capital raised to $550 million. The practical test is whether enterprise use of AI agents turns observability spending into durable growth for Coralogix.

Ramp's $44 Billion Valuation Turns AI Spending Into a CFO Control Problem
AI

Ramp's $44 Billion Valuation Turns AI Spending Into a CFO Control Problem

Ramp announced a $750 million funding round at a $44 billion valuation as companies look for tighter control over AI spending. CEO Eric Glyman said the company crossed $1 billion in annualized revenue and that AI token costs are becoming a new budget line for finance teams. The practical test is whether finance software buyers treat AI usage controls as a core spend-management requirement.

UAE Banks Lead Regional Responsible AI Push as Adoption Gap Narrows
AI

UAE Banks Lead Regional Responsible AI Push as Adoption Gap Narrows

Emirates NBD ranked first and First Abu Dhabi Bank ranked third in a responsible AI index for Middle East and Africa banks. The Evident AI Index surveyed more than 100 companies and weighted talent highest at 45 per cent across four assessment metrics. The practical test is whether UAE banks can turn responsible AI rankings into measurable deployment across customer engagement, risk analytics and core banking workflows.

Keep Reading

More Stories

Latest
UAE Crypto Discovery Tool Turns Post-Quantum Security Into an Inventory TestCybersecurityJun 5, 2026UAE Crypto Discovery Tool Turns Post-Quantum Security Into an Inventory TestThe UAE launched a national Crypto Discovery Tool to help organisations identify and manage cryptographic systems before post-quantum migration. The platform was developed by the UAE Cyber Security Council and Abu Dhabi-based QuantumGate as part of the National Post-Quantum Migration Programme. The practical test is whether public- and private-sector organisations use the tool to build a reliable inventory of cryptographic exposure.UK Cloud Sovereignty Report Puts Palantir Exit Rights and Open Standards in FocusCloud & Data CentersJun 5, 2026UK Cloud Sovereignty Report Puts Palantir Exit Rights and Open Standards in FocusUK MPs urged the government to reduce public-sector cloud lock-in through break clauses, open standards and stronger procurement controls. The committee report points to about £10bn a year in government cloud spending and recommends an exit plan for the Palantir NHS Federated Data Platform by the end of 2026. The practical test is whether the government turns the recommendations into procurement rules, contract disclosures and enforceable exit plans.Poke Gets Apple Approval as AI Agents Move Into iMessage DistributionAIJun 5, 2026Poke Gets Apple Approval as AI Agents Move Into iMessage DistributionPoke received approval to operate on Apple's Messages for Business platform, adding iMessage to its AI-agent distribution channels. The startup says it has relayed about 100 million messages and will pay Apple on a per-user basis, with exact pricing not disclosed. The immediate test is whether iMessage access increases consumer use enough to justify the new platform cost.CISA Android and Linux Warnings Put Patch Timing Back on the Security AgendaCybersecurityJun 5, 2026CISA Android and Linux Warnings Put Patch Timing Back on the Security AgendaCISA added exploited Android and Linux vulnerabilities to its Known Exploited Vulnerabilities catalog. The Android flaw affects Android 14 through 16, while the Linux issue centers on older kernel branches and cgroups v1 container environments. The immediate test is whether agencies and infrastructure operators apply vendor updates or mitigations by CISA's June 5 deadline.Iren Plans 800MW Australia AI Data Center Campus as Power Becomes the Capacity GateCloud & Data CentersJun 5, 2026Iren Plans 800MW Australia AI Data Center Campus as Power Becomes the Capacity GateIren signed a transmission connection agreement for a planned 800MW data center campus in Bundey, South Australia. The project is Iren's first Australian foray and is expected to be energized in 2028 as the company shifts more cash flow toward AI cloud infrastructure. The practical test is whether Iren can turn grid-connected power, financing and GPU capacity into energized AI cloud campuses on the announced timelines.AMD Server CPU Share Hits 33.2% as AI Server Demand Lifts the SegmentChips & SemiconductorsJun 5, 2026AMD Server CPU Share Hits 33.2% as AI Server Demand Lifts the SegmentAMD reached 33.2 percent of the server CPU market in the first quarter of 2026 as overall x86 processor shipments fell by more than six percent. Server CPU unit shipments rose by more than 10 percent from a year earlier, while Intel still held roughly two-thirds of the server CPU market. The next signal is whether AI server demand keeps server processors stronger than the wider PC and client CPU cycle.Cisco Unified CM Flaw Puts WebDialer Exposure Under Patch PressureCybersecurityJun 4, 2026Cisco Unified CM Flaw Puts WebDialer Exposure Under Patch PressureCisco disclosed fixed-release guidance for a critical Unified Communications Manager flaw that can let attackers gain root privileges when WebDialer is enabled. Cisco PSIRT is aware of public proof-of-concept exploit code for CVE-2026-20230, though it has not found active exploitation or targeting. The immediate test is whether administrators patch Unified CM or disable WebDialer before proof-of-concept code turns into wider exposure.Oman's Energy Security Pitch Puts Ports, Private Capital and AI Demand in FocusEconomyJun 4, 2026Oman's Energy Security Pitch Puts Ports, Private Capital and AI Demand in FocusOman was presented as a stronger energy and infrastructure hub as global markets put more weight on supply security and diversified trade routes. The Global Energy Debate at the 2nd Oman Capital Market Conference included Shell Oman, Oman LNG, OQ, BlackRock and Vision Invest. The next signal is whether private capital and infrastructure planning turn Oman's location, ports and energy assets into financed projects.CISA WebLogic Warning Turns Oracle Patch Lag Into an Exposure TestCybersecurityJun 4, 2026CISA WebLogic Warning Turns Oracle Patch Lag Into an Exposure TestCISA ordered U.S. federal agencies to patch Oracle WebLogic Server systems affected by CVE-2024-21182 after active exploitation was observed. Shodan tracks more than 1,592 exposed WebLogic servers vulnerable to the flaw, including 961 on version 12.2.1.4.0 and 631 on version 14.1.1.0.0. The immediate test is whether public- and private-sector defenders apply Oracle fixes or remove exposed systems where mitigations are unavailable.WeedHack Malware Turns Minecraft Mods Into a 116,000-System Infostealer CampaignCybersecurityJun 4, 2026WeedHack Malware Turns Minecraft Mods Into a 116,000-System Infostealer CampaignWeedHack has infected more than 116,000 systems by targeting Minecraft players through malicious mods, clients, cheats and utilities. McAfee telemetry shows 116,464 affected systems, 2,000 to 3,000 infections a day, more than 240 distribution URLs and 3,820 malicious JAR files. The next signal is whether Minecraft mod communities can move users back toward official download sources before infostealer distribution expands further.EU Tech Sovereignty Push Puts Cloud Providers And AI Chips Under Policy ScrutinyCloud & Data CentersJun 4, 2026EU Tech Sovereignty Push Puts Cloud Providers And AI Chips Under Policy ScrutinyThe European Commission proposed a tech-sovereignty package covering chips, AI and cloud services. The package includes the Cloud and AI Development Act and Chips Act 2.0, and still needs approval from all 27 EU member states. The next signal is whether member states convert the proposals into cloud procurement rules and semiconductor investment priorities.Core42's 42MW Lake Mariner Expansion Turns US Power Capacity Into a Gulf AI Cloud SignalCloud & Data CentersJun 4, 2026Core42's 42MW Lake Mariner Expansion Turns US Power Capacity Into a Gulf AI Cloud SignalCore42 expanded its AI cluster at TeraWulf's Lake Mariner site in Buffalo, raising compute capacity there by 42MW to 60MW. The UAE-headquartered G42 company's AI cloud platform has ten global sites operational, with additional deployments planned for 2026. The practical test is whether Core42 exercises further Lake Mariner capacity and turns the expanded US footprint into durable hyperscale and enterprise workloads.