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

Legato Secures $7 Million to Transform How Businesses Build Within Platforms

Legato, an Israeli AI startup founded by Dana Rochman and Shlomit Tennenbaum in 2025, announced $7 million in seed funding led by S Capital VC with participation from Cerca Partners 1

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. The company plans to accelerate its R&D efforts and expand its AI team to further develop its platform that brings AI embeds for SaaS platforms directly to non-technical business users 2

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. Rochman, who serves as CEO, and Tennenbaum, the Chief Product and Technology Officer, are positioning their company at the intersection of vibe coding and practical business needs 1

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Empowering Non-Technical Users to Create Custom AI-Powered Applications

Unlike traditional no-code tools aimed at developers, the Legato AI builder targets business users who work within specific platforms daily. The company's approach centers on what it calls the "Platform Creator Economy," where users become professional services creators producing bespoke product extensions within their existing platforms 1

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. "SaaS platforms are realizing that equipping developers and admins with better no-code or vibe-coding builders is no longer enough," Rochman explained. "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" 1

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Multi-Agent AI System Drives Production-Ready Software Generation

Legato employs a multi-agent AI system that enables users to build apps, workflows, and AI agents by simply describing requirements in plain language 1

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. The platform instantly generates production-ready software while maintaining full visibility and governance for the platform 2

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. This allows business users, partners, and internal teams to collaborate safely on building applications without lengthy professional services cycles. "With Legato, customizations are compressed into hours rather than months, saving time and resources on traditional professional services," said Aya Peterburg, Managing Partner of S Capital VC 2

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Expansion Plans Beyond Current SaaS Platform Partnerships

The company currently works with a range of SaaS platforms spanning CRMs to HR Tech 2

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. Looking ahead, Legato intends to expand beyond SaaS into sectors including financial services, healthcare, telecoms, and energy 2

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. This embedded approach represents what the company sees as the next phase of ecosystem growth, enabling platforms to expand organically through their users and partners, with user-driven features distributed through marketplaces and supported by community-curated knowledge 1

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. The company enters a saturated market alongside competitors like Loveable Labs Inc., Emergent Labs Inc., Google LLC's Opal, and Monday.com Ltd., but distinguishes itself by targeting platform-native creation rather than general development 1

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