Sagittal AI Raises $2.2M to Launch Neo, an AI That Integrates Seamlessly into Software Development Workflows

Sagittal AI, a London-based startup founded by Michael Smith and José Palazon, has raised $2.2 million in pre-seed funding to accelerate the launch of Neo, its AI platform designed to work within — not disrupt — existing software development workflows. The round was led by Twin Path Ventures with backing from SineWave Ventures, Fuel Ventures, Blue Lake VC, and Husayn Kassai.

Neo distinguishes itself by embedding into familiar team tools and Agile processes, enabling engineers to delegate tasks without reshaping their workflows. Smith said most AI tools “shackle developers to the AI,” whereas Neo mirrors a team member’s behavior. Palazon added Neo “navigates shared context like a real collaborator,” removing friction from AI adoption.