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.

Image: Legato