Swedish startup Lovable, specializing in innovative “vibe coding,” has dramatically increased its valuation to $6.6 billion following a successful $330 million Series B funding round. The investment, announced on Thursday, was spearheaded by CapitalG and Menlo Ventures, with participation from notable investors such as Khosla Ventures, Salesforce Ventures, and Databricks Ventures.
This latest funding boost comes just five months after Lovable raised $200 million in a Series A round, when its valuation stood at $1.8 billion. Founded in 2024, the company has rapidly ascended within the AI sector, achieving a remarkable milestone of over $100 million in annual recurring revenue (ARR) within eight months and subsequently doubling that figure to exceed $200 million.
Lovable’s platform allows users to generate code and develop applications using simple text prompts, making it increasingly popular among major software companies, including Klarna, Uber, and Zendesk. The company reports that over 100,000 projects are constructed daily on its platform, amassing more than 25 million projects in its inaugural year.
The newly acquired funds will facilitate enhanced integrations with third-party applications, expand features tailored for enterprise clients, and develop essential infrastructure—such as databases, payment solutions, and hosting—required for robust application and service development.
In comments during the Slush conference in Helsinki, co-founder and CEO Anton Osika emphasized the importance of remaining in Sweden rather than relocating to Silicon Valley, asserting that a strong mission can attract abundant talent locally. “It was tempting, but I really resisted that,” he noted, highlighting the potential for building a global AI company from Sweden.
However, Lovable faced scrutiny in November for failing to pay VAT, a tax applicable to most goods and services in the EU. Osika acknowledged this issue on LinkedIn, stating the company intended to rectify the situation while responding to criticism regarding the European startup environment.
The trend of vibe coding continues to attract significant venture capital interest, exemplified by Cursor, which recently raised $2.5 billion at a staggering valuation of $29.3 billion, effectively doubling its worth within a six-month period.
