In a mere five months, the Swedish vibe-coding startup Lovable has seen its valuation more than triple.
Lovable, headquartered in Stockholm, announced on Thursday that it secured $330 million in a Series B funding round, achieving a $6.6 billion valuation. This round was spearheaded by CapitalG and Menlo Ventures, with additional contributions from Khosla Ventures, Salesforce Ventures, Databricks Ventures, and other investors.
This recent capital injection follows closely on the heels of a $200 million Series A round in July, which had previously valued Lovable at $1.8 billion.
Lovable has rapidly leveraged the AI surge with its ‘vibe-coding’ tool, enabling users to generate code and construct full applications using text prompts. Launched in 2024, the company has experienced explosive growth: achieving the impressive $100 million ARR mark within eight months, and subsequently doubling that to exceed $200 million in annual recurring revenue in just four additional months.
Prominent software companies such as Klarna, Uber, and Zendesk are among its clientele. Lovable reports that over 100,000 new projects are initiated on its platform daily, with more than 25 million projects completed in its inaugural year.
The new capital, according to Lovable, will be allocated towards fostering more extensive integrations with third-party applications, enhancing enterprise-specific functionalities, and strengthening its platform’s infrastructure, including components such as databases, payment systems, and hosting, to support comprehensive application and service development.
During this year’s Slush conference in Helsinki, Finland, Lovable co-founder and CEO Anton Osika attributed the company’s scaling success to his choice to disregard investor pressure to move the company to Silicon Valley.
“It was tempting, but I really resisted that,” Osika said onstage at the November conference. “I [can] sit here now and say, ‘Look, guys, you can build a global AI company from this country.’ There is more available talent if you have a strong mission, and you have a lot of urgency coming together as a group and working.”
The company faced scrutiny in November for its failure to pay VAT, a standard tax on most goods and services within the European Union (EU). Osika acknowledged this issue as legitimate in a LinkedIn post, assuring that the company would rectify the situation and dismissing arguments that such taxes make the EU an unsuitable environment for high-growth startups.
Venture capitalists continue to show strong interest in vibe coding. Cursor, another prominent company in this sector, secured $2.3 billion in November, reaching a $29.3 billion valuation. Similar to Lovable, this marked Cursor’s second funding round of the year, with its valuation doubling between June and November.
TechCrunch has contacted Lovable seeking further details.