Legato secures $7M to bring vibe coding AI builder directly to business users within SaaS platforms

Legato raises $7M to corral in-platform vibe coding with SaaS app AI builder - SiliconANGLE

Legato raises $7M to corral in-platform vibe coding with SaaS app AI builder Legato, a company building in-platform artificial intelligence "vibe" application creation for business users, today announced $7 million in seed funding to expand its software-as-a-service product that allows businesses to embed AI builders directly into their products. Israel-based early-stage venture capital firm S Capital VC led the funding round with participation from Cerca Partners. The company is led by co-founder and Chief Executive Dana Rochman (pictured, right) and co-founder and Chief Product and Technology Officer Shlomit Tennenbaum (left). Legato offers a multitude of products and services that provide what have become known as low-code and no-code vibe-coding applications, allowing non-experts to code applications. Many of them provide natural language prompts to generate commercial business and web applications. Legato's paradigm is different: It built a platform aimed directly at business users of individual platforms instead of a general or developer audience. The company calls this the "Platform Creator Economy." Within this model, the company posits, users take on the role of professional services creators producing bespoke product extensions within the platform to expand its capabilities at reduced cost in a fraction of the time. Essentially, Legato allows users to code their own plugins and tools native to the platform they live in. "SaaS platforms are realizing that equipping developers and admins with better no-code or vibe-coding builders is no longer enough," said Rochman. "The next battleground in the vendor AI race will be about empowering business users -- those who understand the needs best -- to create what they need themselves." Using a multi-agent AI system behind the scenes, Legato can build apps, workflows and AI agents to generate production-ready software described by business users in plain language. The company said this embedded path is the next phase of ecosystem growth, enabling platforms to expand organically through their users and partners. This approach brings in apps tailored to specific needs, with user-driven features distributed through marketplaces and supported by community-curated know-how. Legato enters into a heavily saturated industry filled with numerous AI vibe coding startups and enterprise debuts aimed at developers of every rank and file, from the technical, semi-technical and nontechnical including Loveable Labs Inc., Emergent Labs Inc., Google LLC's Opal and Monday.com Ltd., among many more.

Israeli AI startup founded by women entrepreneurs announces $7 million investment round

Israeli Artificial Intelligence (AI) startup Legato announced on Tuesday that it raised $7 million in an investment round led by S Capital VC, with participation from Cerca Partners. The company, founded by female entrepreneurs Dana Rochman and Shlomit Tennenbaum in 2025, focuses on providing AI embeds for Software-as-a-Service (SaaS) platforms. "SaaS platforms are realizing that equipping developers and admins with better no-code or vibe-coding builders is no longer enough," said Rochman, who currently works as the Legato CEO. "Legato brings vibe app creation directly to non-technical users, turning professional services into an autonomous, in-product experience that is available to anyone," she added. The company said in a statement that the funds raised in this round will be used to accelerate its R&D and expand the AI team. How does Legato work? The platform works by enabling safe collaboration on building apps, workflows, or AI agents within the platform, so business users, partners, and internal teams can easily build the applications they need without long, costly professional services cycles, Legato said. "Users simply describe their requirements in plain language, and Legato instantly generates production-ready software while maintaining full visibility and governance for the platform," the company assures. "With Legato, customizations are compressed into hours rather than months, saving time and resources on traditional professional services and turning the tide for SaaS platforms at risk of slowdown," said Aya Peterburg, Managing Partner of S Capital VC. The company currently works with a range of SaaS platforms, from CRMs to HR Tech, and intends to expand beyond SaaS, aiming to enter the financial services, healthcare, telecoms, or energy sectors.