Kodesage, a Budapest-based startup specializing in AI-powered legacy software modernization, has raised €2.3 million in a pre-seed funding round. Hungarian VC firm PortfoLion Capital Partner led the round with participation from a number of angel investors. The company shared the details with AIN.

About Kodesage

  • Founded in 2024 by Miklos Szurdi, Gergely Dombi, and Gyorgy Szilagyi — creators of Sonrisa — Kodesage aims to tackle a critical challenge in enterprise IT: understanding, maintaining, and modernising legacy systems. 
  • The startup’s AI platform automates documentation, speeds up onboarding, and simplifies modernization while ensuring compliance and data security.

“Legacy systems are outdated and painful to manage, yet they’re still mission-critical for enterprises. Replacing them outright is often impossible due to high costs and risks. That’s where Kodesage comes in: our technology empowers businesses to enhance and evolve these systems without the massive upheaval of full replacements,” said Gergely Dombi, Co-founder and CEO of Kodesage.

Investment details

The funding round was led by PortfoLion Capital Partner and included participation from prominent angel investors, including three former UiPath executives. 

  • PortfoLion is the venture capital and private equity arm of OTP Bank, managing €440 million across six funds. 
  • It invests in startups and growth-stage companies across IT, fintech, cybersecurity, e-commerce, and other sectors, with flexible financing from €500,000 to €30 million.
  • One of its recent deals was acquiring a minority stake in the Polish e-commerce platform 4FIZJO.

“We’ve seen thousands of teams over the past two decades helping enterprises with their modernization efforts, focusing on what was productizable before the current generative AI wave. The AI toolkit that has emerged over the past two years has now opened up a new, even more painful part of the legacy stack for modernization in a venture-scalable way. We couldn’t be more excited to team up with such a perfectly assembled founder team—György, Gergely, and Miki—to tackle this incredible opportunity,” said Márk Pálfalvi, Principal at PortfoLion.

With paying customers already on board and multiple pilots underway, Kodesage will use the funding to enhance its platform and scale its go-to-market efforts.