Kodesage Ltd Secures £2.3m Seed Funding to Modernise Legacy Software with AI

Kodesage Ltd, a London-based technology firm, has successfully closed a £2.3 million seed funding round. The company specialises in providing an AI-powered platform designed to assist enterprises and engineering teams in modernising and managing complex legacy software systems. This recent capital injection, with an allotment date of 6 March 2026 and a filing date of 23 April 2026, marks a significant step for the young company as it aims to address a critical challenge faced by businesses globally.

Incorporated on 26 June 2024, Kodesage Ltd was founded to tackle the pervasive issue of outdated IT infrastructure, particularly within regulated industries. The company's platform streamlines the modernisation process by offering automated documentation, simplified onboarding for new systems, and compliance-friendly solutions. This approach directly addresses the operational inefficiencies and significant financial burdens associated with maintaining legacy software.

While specific financial metrics such as revenue, employee count, or profit/loss figures for Kodesage Ltd were not disclosed, the company's offering targets a substantial and growing market need. The seed round of £2.3 million represents the company's initial external investment, providing the necessary capital to further develop its platform and expand its reach.

In terms of leadership, Kodesage Ltd has seen recent appointments to its board. Apostolos Ioannis Apostolakis was appointed as a director on 26 March 2026. LinkedIn suggests that Apostolos Ioannis Apostolakis may be a Founding Partner at VentureFriends, though this AI match remains unverified. Alistair George Youngs was also appointed as a director on 29 January 2026.

The successful seed round for Kodesage Ltd comes at a time of notable activity in the UK's early-stage funding landscape, particularly within the artificial intelligence and software development sectors. In 2025, the UK's startup ecosystem demonstrated considerable vitality, with a surge in Seed funding rounds. A total of 1,604 early-stage companies secured their inaugural seed investments in 2025, with these rounds collectively valued at £1.8 billion. London continues to be a dominant hub for such investments, accounting for 61.8% of equity funding and 47.2% of deals in the first half of 2024 for seed funding. Overall, UK venture capital funding in 2026, up to April, has shown a 14.13% increase compared to the same period in 2025.

Artificial intelligence has emerged as a key driver of investment, with over 60% of companies in 2025 seed deals explicitly leveraging AI. AI startups collectively raised over £6 billion in 2025, representing more than one-third of all UK venture capital. London is recognised as a leading hub for AI startups. This trend underscores a broader shift towards practical deployment of AI solutions, moving beyond initial hype to address specific pain points in various industries.

Kodesage Ltd's focus on legacy software modernisation with AI positions it within a sector experiencing significant demand. Many UK organisations face critical obstacles in adopting artificial intelligence due to their reliance on outdated systems. Research indicates that 61% of organisations report technical debt from legacy platforms actively blocking their efforts to integrate AI. Furthermore, nearly 90% of surveyed organisations remain tied to legacy Windows infrastructure, with 84% finding it challenging to integrate AI within these environments.

The financial implications of this challenge are substantial. The UK government alone allocates a staggering £2.3 billion annually to maintaining outdated legacy systems, which accounts for nearly 50% of its yearly tech budget. Businesses across the country face similar financial burdens from aging technology, with 90% of IT decision-makers acknowledging that these legacy technologies actively prevent their organisations from innovating and operating efficiently.

Recognising this critical need, there is a growing emphasis on modernising IT infrastructure. The UK government is prioritising investment in AI and machine learning, with 26% of leaders identifying this as their principal focus for 2026. The government is also utilising its Spending Review to address ageing IT systems and invest in AI for the public sector. Additionally, the £500 million Sovereign AI initiative aims to invest directly in promising UK AI startups to help them scale quickly.

The UK software development market is projected to reach approximately £62 billion by 2026, driven by a yearly digital transformation-induced growth rate of 3.9%. Key growth drivers include cloud adoption, AI, and bespoke applications. The annual average growth rate of the UK's software market is 5.5%, largely attributable to business digitalisation, cloud/SaaS adoption, and increased AI usage in business processes. Kodesage Ltd's offering aligns directly with these trends, providing a solution to a widespread and costly problem, and tapping into a vibrant and well-funded segment of the UK tech ecosystem.