Lovable AI Startup Soars to $6.6 Billion Valuation in Rapid Funding Surge

Swedish AI company Lovable has more than tripled its valuation in just five months. The Stockholm-based startup announced a massive $330 million Series B funding round on Thursday. The round was led by CapitalG and Menlo Ventures.

This new investment values the vibe-coding pioneer at a staggering $6.6 billion. According to reports from Reuters, this marks one of the fastest valuation climbs in recent tech history. The company’s rapid growth highlights intense investor appetite for generative AI tools.

From $1.8 Billion to Industry Leader in Record Time

This latest funding follows a $200 million Series A round in July. That round valued Lovable at $1.8 billion. The new $6.6 billion figure represents a huge leap in a very short period.

Lovable builds tools that let users create software with simple text prompts. This “vibe-coding” approach has attracted major clients. Companies like Klarna, Uber, and Zendesk now use its platform.

The startup’s financial performance is remarkable. It reached $100 million in annual recurring revenue within eight months of launch. It then doubled that revenue to over $200 million just four months later.

Scaling a Global AI Powerhouse from Sweden

The company plans to use the new capital for significant expansion. Funds will go toward deeper third-party app integrations and enhanced enterprise features. Lovable also aims to build out critical infrastructure like databases and payment systems.

Co-founder and CEO Anton Osika credits the company’s location for its success. He resisted investor pressure to move the company to Silicon Valley. Osika stated that building a global AI leader from Sweden is entirely possible with a strong mission.

The company faced minor controversy last November over a VAT payment issue. Osika quickly addressed the matter on LinkedIn. He confirmed the company would resolve the tax situation promptly.

The latest funding cements Lovable’s position as a dominant force in the AI-powered development space. Its explosive growth reflects a transformative shift in how software is built. The Lovable AI story demonstrates the staggering potential of generative coding tools.

Thought you’d like to know

What is “vibe-coding”?

Vibe-coding refers to using natural language text prompts to generate computer code and build applications. It allows people with less technical expertise to create software by describing what they want.

Who invested in Lovable’s latest round?

The $330 million Series B was led by CapitalG and Menlo Ventures. Other participants included Khosla Ventures, Salesforce Ventures, and Databricks Ventures.

How fast is Lovable growing?

The company reached $100 million in annual revenue within eight months of launch. It then hit $200 million in annual recurring revenue only four months after that.

What will Lovable do with the new funding?

The capital will fund deeper app integrations, enterprise features, and core infrastructure. This includes building out databases, payments, and hosting services for users.

Why is the company’s location significant?

CEO Anton Osika highlighted that Lovable scaled as a global AI leader from Sweden. He resisted moving to Silicon Valley, proving high-growth tech companies can thrive in Europe.

Is vibe-coding a popular investment area?

Yes. For example, competitor Cursor raised $2.3 billion in November at a $29.3 billion valuation. Investor interest in AI-assisted coding tools remains extremely high.