Mechanical Orchard raised $50M to keep modernizing large organizations' software systems

San Francisco-based startup Mechanical Orchard is leveraging AI to help enterprises modernize their legacy software systems. The company recently shared it completed a $50 million Series B funding round led by GV (Google Ventures). The investment underscores the importance of Mechanical Orchard's approach to transitioning organizations from legacy systems to modern, cloud-based applications, as an estimated 71% of Fortune 500 companies still depend on aging mainframe systems, and reliance on legacy systems is an issue that costs the US economy about $1.52 trillion.

Founded in October 2022 by Rob Mee, former founder of Pivotal Labs, Mechanical Orchard's AI-driven approach to systems modernization streamlines and de-risks the process by creating an iterative, reverse-engineered, cloud-based copy of the existing systems. This approach enables the company to deliver each of the system's iterations as working software into production, thus demonstrating that the migration is working, and allowing for a fast, high-quality transition.

Mechanical Orchard plans to use the funds to scale its R&D program, focusing on advancing AI applications to enhance the speed and efficiency of system transitions. Commenting on the new partnership, Crystal Huang, General Partner at GV, remarked on Mechanical Orchard's understanding of enterprise IT needs, the company's experience managing and scaling teams, roadmap, and market opportunities as the company's strongest qualities.