Stockholm-based Lovable, a Swedish vibe coding startup, raised $330 million in a Series B funding round on Thursday at a $6.6 billion valuation. CapitalG and Menlo Ventures led the round, with participation from Khosla Ventures, Salesforce Ventures, Databricks Ventures, and other investors. The funding supports expansion of its platform that enables users to write code and build apps using text prompts.
Lovable launched its product in 2024, quickly capitalizing on demand for AI-driven development tools. The company achieved $100 million in annual recurring revenue within eight months of launch. Four months after that milestone, Lovable surpassed $200 million in annual recurring revenue. This rapid growth positioned the startup among the fastest to reach such financial benchmarks in the AI sector.
Prior to the Series B, Lovable completed a $200 million Series A round in July 2024, which valued the company at $1.8 billion. The valuation more than tripled in five months, reflecting investor confidence in the company’s trajectory. Vibe coding refers to the process where users describe applications in natural language, and the tool generates the corresponding code and full applications.
The startup serves prominent customers including Klarna, Uber, and Zendesk. Lovable reports that more than 100,000 new projects are created on its platform each day. In its first year, the platform facilitated the creation of over 25 million projects, demonstrating substantial user engagement and adoption across various scales of development.
Lovable plans to allocate the Series B proceeds toward developing deeper integrations with third-party applications. The company will expand features tailored for enterprise use cases. Additional investments will enhance the platform’s infrastructure, incorporating elements such as databases, payments, and hosting to enable the construction of complete, production-ready applications and services.
At the 2024 Slush conference in Helsinki, Finland, Lovable co-founder and CEO Anton Osika addressed the company’s location strategy. Osika explained his resistance to investor pressure to relocate from Sweden to Silicon Valley. “It was tempting, but I really resisted that,” Osika said on stage at the November conference. He emphasized the viability of building in Sweden, stating, “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.”
In November 2024, Lovable faced scrutiny for not paying value-added tax, which applies to most goods and services in the European Union. Osika confirmed the issue in a LinkedIn post. He stated that the company would remedy the situation and disabled comments on the post amid discussions linking such taxes to challenges for high-growth startups in the EU.
