Funding
Legato Raises $7 Million Seed to Bring Vibe App Creation Inside Enterprise Software
Enterprise software has spent years chasing flexibility, promising customers configurable platforms that adapt to how their businesses actually operate. In practice, that promise has often fallen short. Customizations are slow, expensive, and heavily dependent on scarce technical resources. Today, Tel Aviv–based Legato announced a $7 million seed round aimed squarely at changing that dynamic by putting app creation directly into the hands of business users.
The round was led by S Capital VC, with participation from Cerca Partners. The funding will be used to accelerate research and development and expand Legato’s AI team as the company deepens integrations with B2B software platforms.
Why Vibe App Creation Has Become Table Stakes
Natural-language software creation is no longer novel. Internal tools, workflows, and lightweight applications can already be assembled through prompts and high-level instructions, and most modern platforms acknowledge that this capability is quickly becoming expected. The more consequential question is not whether vibe app creation exists, but how it is delivered and governed.
Many current approaches live outside the core product. Builders are layered on top of platforms or operate as separate automation environments, creating friction between ideation and deployment. Business users can express intent, but translation, approval, and production still fall back to technical teams. The outcome is incremental improvement, not structural change.
Legato approaches the problem from inside the platform rather than around it.
Embedded Creation With Platform-Native Guardrails
Legato’s AI builder is designed to be embedded directly into a SaaS product and operate entirely within the platform’s existing architecture. Rather than generating generic code or external automations, it produces platform-native apps, workflows, and agents that respect the vendor’s data models, permissions, and security policies.
This distinction is central to Legato’s positioning. Creation happens in a controlled environment defined by the platform owner, ensuring that anything built is observable, auditable, and compliant by default. For vendors, this preserves governance and product integrity. For users, it removes the need to understand underlying implementation details.
Business users describe outcomes in plain language. The system handles translation into deployable functionality that already fits the product they are using.
Turning Professional Services Into Software
Under the hood, Legato operates as a coordinated multi-agent system that mirrors how professional services teams work today. Different agents collaborate to interpret intent, assemble components, and validate outputs before anything is surfaced to users. The emphasis is not on experimentation, but on producing extensions that are ready for real-world use.
This has meaningful implications for SaaS economics. Professional services remain a major driver of customization, but they also introduce delays, cost sensitivity, and scalability limits. By compressing implementation cycles from months to hours, platforms can offer customization as an on-demand capability rather than a project-based engagement.
The result is faster onboarding, quicker realization of value, and fewer handoffs between customers, consultants, and internal teams.
The Platform Creator Economy in Practice
Legato frames this shift as the emergence of a Platform Creator Economy, where users and partners actively extend the platforms they rely on. Instead of submitting requests or workarounds, they build context-specific functionality directly within the product and reuse it across teams or organizations.
For vendors, this creates a compounding effect. Platforms become more adaptable without expanding core engineering scope. User-driven extensions can surface as shared assets or marketplace offerings, aligning innovation with actual demand rather than speculative roadmaps.
Importantly, this growth model does not require relinquishing control. The platform remains the system of record, distribution layer, and governing authority.
What This Signals for the Future of Enterprise Software
As agentic systems mature, enterprise software is beginning to shift from static configuration toward continuous adaptation. Creation moves closer to the business context where needs emerge, while governance becomes embedded in the platform itself rather than enforced after the fact.
If this model scales, platforms will increasingly resemble living systems—evolving through their users while remaining structurally sound. The line between using software and shaping it continues to blur, not by making everyone a developer, but by abstracting complexity entirely.
Legato’s funding round reflects that transition. It is less a bet on vibe app creation itself and more a signal that the next phase of enterprise software will be defined by who controls creation, where it happens, and how safely it can scale.
