A London-based startup has raised $2.2M in pre-seed capital, positioning its product Neo as an embedded component in software development teams. This funding round, led by Twin Path Ventures with participants including SineWave Ventures, Fuel Ventures, Blue Lake VC, and angel investor Husayn Kassai, supports product rollout plans. The investment highlights a trend toward integrating AI directly into team workflows while reducing repetitive tasks.
Earlier reports on similar funding rounds emphasized the promise of automating development processes, with previous articles noting challenges in adapting AI to established team routines. Additional sources detailed how startups are testing methods to minimize context-switching and manual data handling, which aligns with the current information on Neo’s design and deployment.
How does Neo address developer inefficiencies?
Neo is designed to automate repetitive tasks such as ticket creation, pull requests, and deployment, reducing the need for developers to manually manage data across various systems.
“Despite millions invested in AI development tools, most companies can’t identify any measurable improvement in the metrics that actually matter. That’s because current solutions force developers to become shackled to the AI, manually copying requirements, searching for context, and navigating between tools. There’s also a deeper psychological barrier at play—teams are reluctant to delegate to AI due to perfectionism,”
stated Michael Smith, CEO and Co-founder of Sagittal AI.
Can Neo seamlessly join existing teams?
Neo integrates into established development workflows by operating as an active team member rather than an external tool. It helps teams delegate entire tasks without requiring a complete overhaul of systems.
“The key difference is that Neo acts like a team member, not a tool. Neo drives actual change because it can both operate within your existing workflows and enable new patterns of delegation. When you assign a task to a colleague, you rely on them to navigate your shared context. Neo works the same way, adapting to your team’s processes rather than demanding humans learn new workflows to accommodate AI’s limitations,”
noted José Palazon, CTO and Co-founder.
The secured funding supports both product enhancements and broader market outreach. Telefónica, for example, has already adopted Neo across 17 development teams, demonstrating its operational versatility. Investors are positive, and John Spindler of Twin Path Ventures remarked,
“There’s a big gap between claimed AI productivity and measurable results. We invested in Sagittal because they’ve recognized what others have missed or chosen to ignore: that psychological barriers and team dynamics, not technical issues, are preventing AI adoption at scale.”
Plans include extending Neo’s capabilities to cover the entire product development lifecycle. The company aims to provide enterprise teams with a solution that aligns with existing practices while mitigating manual inefficiencies. This progression showcases efforts to bridge technical integration with user expectations.
Overall, Sagittal AI’s approach underscores the need for practical AI solutions that align with team dynamics and established workflows. Evaluations indicate that embedding AI into development processes may alleviate common bottlenecks and improve operational metrics. The funding injection supports a strategic focus on delivering a product that dovetails with existing systems rather than imposing new methodologies.
