Conduct's $60M Series A signals VC rush into AI-driven legacy modernization

For founders and VCs, Conduct's massive Series A is a case study in solving a universally acknowledged pain: the multi-month lag between a business decision and its system implementation. The round's size and the caliber of investors—Index, ICONIQ, and SAP itself—signal that the market for AI that understands and refactors custom enterprise code is now a top-tier funding category. Startups building in this space should note the platform approach and the strategic anchor provided by SAP.

Conduct, an AI operating system for enterprise software understanding and modification, announced a $60 million Series A funding round on June 17, 2026. The round was co-led by Index Ventures and ICONIQ Capital, with strategic investment from enterprise software giant SAP, and participation from existing investors Creandum, Lucid Capital, and Booom. The massive early-stage raise underscores both the scale of the problem Conduct is tackling and the accelerating investor appetite for AI applications that address the deep-seated inefficiencies of legacy enterprise IT.

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The round was co-led by Index Ventures and ICONIQ Capital, with strategic investment from enterprise software giant SAP, and participation from existing investors Creandum, Lucid Capital, and Booom.

Large organizations run on software systems—ERPs, CRMs, supply chain platforms—that have been customized tens of thousands of times over decades to embed unique business rules, approval workflows, and procurement logic. Changing even a single rule often requires weeks or months of manual code review, reverse-engineering of undocumented integrations, and lengthy handoffs between business analysts, developers, and external consultants. This bottleneck has become a critical drag on digital transformation, compliance, and competitive agility. Conduct’s platform ingests all custom code, configurations, dependencies, and integrations across these complex systems, then maps how every technical component connects to the underlying business logic it serves. Users can ask plain-language questions—like “What depends on this approval workflow?” or “What breaks if I change this field?”—and receive an instant dependency map. The AI then generates the necessary code changes, tests, and implementation work, collapsing the cycle from months to minutes.

The strategic involvement of SAP is particularly notable. As thousands of enterprises accelerate their migration to SAP Cloud ERP ahead of the end of mainstream support for legacy SAP systems, they face the daunting task of untangling decades of customizations. Conduct’s technology directly addresses that pain point, making it a natural fit for SAP’s ecosystem. SAP’s investment signals validation and likely channel partnership potential, while also raising the question of how closely Conduct will align with SAP’s product roadmap and whether it will remain neutral across other enterprise platforms.

The funding amount and investor pedigree reflect a broader market shift. The total addressable market for enterprise software modernization and AI-driven DevOps is estimated to be in the tens of billions of dollars, and startups that can automate the understanding of custom codebases are drawing comparisons to early automation of infrastructure management. Index Ventures and ICONIQ’s co-lead, alongside Creandum’s continued backing, underscores that top-tier firms see Conduct as a potential platform winner in a nascent but rapidly expanding category.