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.