Legato Secures $7 Million Seed to Revolutionize Vibe App Creation in SaaS Platforms
Legato, a trailblazer in vibe app creation for business applications, recently announced a significant milestone: a successful $7 million seed funding round spearheaded by venture capital firm S Capital VC, with participation from Cerca Partners. This funding is set to boost the development of Legato's pioneering platform, which enables non-technical users to design tailored applications directly within their existing software solutions.
Founded in 2025 by visionaries Dana Rochman and Shlomit Tennenbaum, Legato emerged with a mission to democratize app development by allowing users without programming skills to customize and implement features effortlessly. Traditionally, customizing software solutions, especially SaaS platforms, has been a cumbersome and costly process, often taking months and requiring substantial investments in consultancy services. Recent statistics suggest that a significant portion of SaaS customers dedicate considerable budgets—sometimes up to 50%—to external consultants, which can stifle product adoption and cause high churn rates.
In contrast, Legato's innovative approach addresses these challenges by embedding an AI-driven app creation tool directly into business platforms. This strategic move aligns with the increasing demand for user autonomy in software development, particularly in an era where non-technical users are turning to accessible AI tools to meet their unique needs. The risk, however, is that vendors who fail to empower their users could alienate customers, diminish visibility into platform usage, and ultimately lose their competitive edge.
Legato’s engine operates as a multi-agent AI system resembling a virtual professional services team. This allows business users, partners, and internal stakeholders to collaboratively develop applications, workflows, or even AI agents without engaging in protracted and costly cycles typically associated with professional services. Users can articulate their requirements in simple language, prompting Legato to generate software solutions that are production-ready within moments.
Dana Rochman, CEO and Co-Founder of Legato, highlighted the necessity for SaaS platforms to adapt in a rapidly evolving technological landscape. "Many SaaS vendors are beginning to understand that simply equipping developers with improved no-code or vibe coding options falls short. The next competitive edge will be found in empowering the business users - those who best understand the needs - to create what they require themselves. Legato transforms professional service functions into a streamlined in-product experience accessible to every user. This advancement not only helps platforms remain competitive, but also retains control over the creation in-house while enabling users to develop tools tailored to their business requirements."
The Platform Creator Economy model that Legato is advancing represents a fundamental shift. In this ecosystem, business users can act as their own professional service providers, creating customized product extensions swiftly and at significantly lower costs compared to traditional methods.
As the demand for customization within SaaS platforms continues to surge, driven by user needs, Legato is poised to tap into a market craving efficiency and faster deployment of features. Managing Partner at S Capital VC, Aya Peterburg, remarked on the growth potential for SaaS vendors that harness Legato’s capabilities: "Many vendors currently miss out on significant revenue opportunities due to delayed customizations. With Legato's innovations, the timeframe for these adjustments can be reduced from months to hours, saving invaluable resources and reversing the stagnation trend faced by many SaaS companies."
Legato is already collaborating with a diverse array of SaaS platforms spanning CRMs to HR tech solutions and aims to broaden its applicability to various sectors such as financial services, healthcare, telecommunications, and energy. Any platform equipped with APIs stands to gain from Legato’s autonomous, AI-enhanced professional services approach.
In conclusion, Legato is pioneering a new phase in app development, blending user-driven needs with cutting-edge technology. The firm plans to continue its progress by leveraging the latest funding to enhance research and development efforts while expanding its AI team to fortify its position at the forefront of industry innovation. By turning every user into a creator and every platform into a self-sustaining ecosystem, Legato aims to redefine the dynamics of the SaaS industry and ensure its clients remain ahead in the AI landscape. To stay updated on Legato, visit their website at www.legato.ai.