The Swedish startup Lovable has seen its valuation triple in just five months. Recently, Lovable, based in Stockholm, announced a successful $330 million Series B funding round led by CapitalG and Menlo Ventures, with the company's valuation reaching $6.6 billion. The funding also included participation from multiple investment institutions such as Khosla Ventures, Salesforce Ventures, and Databricks Ventures.
Lovable was founded in 2024 and is a company dedicated to "vibe coding," offering a tool that allows users to write code and build complete applications through text prompts. The company completed a $200 million Series A funding round in July of last year, with a valuation of $1.8 billion at that time.
Since its founding, Lovable has experienced rapid growth, achieving an annual recurring revenue (ARR) of $100 million within eight months, and this number quickly doubled to over $200 million four months later. The company has attracted many well-known software companies as customers, including Klarna, Uber, and Zendesk, claiming that more than 100,000 new projects are created on its platform daily, with over 25 million projects created within the first year.
Lovable said it will use the newly raised funds to further deepen integrations with third-party applications, expand its enterprise usage features, and improve the platform's infrastructure, including databases, payments, and hosting, to support the development of full-featured applications and services.
Lovable co-founder and CEO Anton Osika stated at the Slush conference in Helsinki, Finland, that the company's success had a lot to do with its decision not to move to Silicon Valley. "It was tempting, but I really resisted that idea," Osika said at the event. "I can say here that you can build global AI companies in this country," he emphasized. He highlighted that companies with a strong mission and team urgency can attract more top talent.
Despite this, Lovable was accused in November of not paying value-added tax, which applies to most goods and services in the EU. Osika confirmed this on LinkedIn and stated that the company would resolve the issue as soon as possible.
Currently, vibe coding remains a hot area for venture capitalists. Another similar company, Cursor, secured $2.3 billion in funding in November, with a valuation of $29.3 billion. Like Lovable, this was the company's second round of funding this year, with its valuation doubling between June and November.
Key Points:
🌟 Lovable raised $330 million in funding, with a valuation of $6.6 billion, tripling in value in just five months.
📈 The company created over 25 million projects within its first year, with more than 100,000 new projects launched daily.
🌍 CEO Osika emphasized that global AI companies can be successfully built in Sweden, rejecting the move to Silicon Valley.
