London-based startup Sagittal AI has raised £2.2 million in pre-seed funding to speed up the development and rollout of Neo, its AI-powered team member designed to integrate directly into developer workflows. The round was led by Twin Path Ventures, with support from SineWave Ventures, Fuel Ventures, Blue Lake VC, and angel investor Husayn Kassai. With this backing, Sagittal plans to expand Neo’s features and scale its adoption across enterprise software teams.
A New Approach to AI in Software Development
While most AI coding tools attempt to operate independently from human teams, Sagittal takes a different route. Instead of building standalone agents, they’ve created Neo to work inside existing developer tools like Jira, GitHub, and internal documentation platforms. Neo doesn’t require teams to learn new systems—it adapts to how they already work and integrates seamlessly into their daily routines.
Neo: The AI Team Member That Completes Real Tasks
Neo doesn’t just suggest code snippets—it takes on entire assignments from start to finish. Whether it’s implementing a new feature, rewriting legacy code, fixing CI/CD errors, or creating test coverage and architecture diagrams, Neo pulls the required context from your systems and delivers a polished output. Developers simply assign a task, and Neo handles the rest.
In one pilot, Neo completed a task in just 15 minutes that normally took two to three days. It retrieved context, wrote clean code, generated documentation, and included test coverage—all without a single manual input during the process.
Solving the Flaws of Current AI Coding Tools
Sagittal’s founders, Michael Smith and José Palazon, bring decades of experience building complex systems at companies like Google, Amazon, and Qualcomm, as well as deep cybersecurity expertise. They’ve seen how traditional AI tools fall short. Many tools, like Cursor and Devin, turn developers into AI babysitters—constantly feeding the model context and cleaning up after it.
Neo solves this by working like a real teammate. It doesn’t just offer a quick fix or generate lines of code; it understands how to operate within Agile processes without breaking team dynamics.
Built for Enterprise: Real Results from Pilot Deployments
Neo has already proven effective in real-world use. During early trials with companies like Telefónica and top European financial services firms, Neo showed it could handle complex, regulated environments. It scaled well, worked across large codebases, and delivered productivity boosts—all while staying compliant with strict enterprise standards.
This ability to function inside structured, collaborative systems gives Sagittal a clear edge in a competitive market crowded with fragmented AI tools.
Competing with the Best—By Doing What They Don’t
Unlike tools such as GitHub Copilot, Magic.dev, Factory, or Sweep.dev, which focus on code completion or narrow workflows, Neo is designed to operate across the entire development lifecycle. Instead of relying on copy-paste routines or requiring new UIs, Neo blends into your team’s current environment, removing the friction of switching tools or resetting context.
Neo’s key differentiator: it works like a developer, not like another tool. This shift means even an 80% complete AI solution—if fully integrated—delivers more value than a “perfect” tool that only helps in isolated steps.
What Founders and Investors Are Saying About Neo
CEO Michael Smith explains the core issue: “Despite millions poured into AI dev tools, most companies can’t point to real gains. These tools force developers to babysit the AI—copying specs, switching tools, digging up context. Neo flips that. You assign a task, and it gets done.”
CTO José Palazon adds, “When you assign a task to a human teammate, you don’t walk them through every file or paste every spec. You trust they understand the context. Neo works the same way—adapting to your team’s processes.”
John Spindler, Partner at Twin Path Ventures, said their investment was driven by Sagittal’s focus on the real blockers to AI adoption—team dynamics, psychological barriers, and workflow disruption. “Sagittal recognised that adapting AI to human workflows—not the other way around—is the shift enterprise development needs to see measurable results.”
Looking Ahead: The Future of AI-Powered Development Teams
With strong investor backing, experienced founders, and a product already delivering enterprise-grade results, Sagittal AI is well-positioned to reshape how software teams collaborate. By embedding Neo into everyday workflows, they’re proving that AI doesn’t have to replace developers—it can empower them.
Neo’s ability to complete tasks autonomously while maintaining team cohesion is already turning heads. As companies look for ways to truly scale productivity with AI, Sagittal is showing how a collaborative, workflow-native approach can lead the way.
