Swedish startup Lovable has more than tripled its valuation in five months after closing a $330 million Series B funding round, underscoring investor interest in its AI-powered “vibe-coding” platform as the company reports rapid revenue growth and expanding enterprise demand.
Series B Funding And Valuation Jump
Stockholm-based Lovable said on Thursday that the Series B round was led by CapitalG and Menlo Ventures, valuing the company at $6.6 billion. Khosla Ventures, Salesforce Ventures, and Databricks Ventures also participated, alongside other investors.
The funding comes shortly after Lovable raised a $200 million Series A round in July that valued the company at $1.8 billion, meaning its valuation has increased by more than three times in roughly five months.
Product Offering And Revenue Growth
Lovable launched in 2024 and has focused on what it describes as “vibe coding,” a method that allows users to generate code and build complete applications using text prompts. The company said it reached $100 million in annual recurring revenue within eight months of launch. Four months later, it reported surpassing $200 million in ARR.
Lovable said more than 100,000 new projects are created on its platform each day. It also reported that more than 25 million projects were built during its first year of operation. The company counts Klarna, Uber, and Zendesk among its customers.
Planned Use Of New Funding
Lovable said the Series B funding will be used to deepen integrations with third-party applications and expand features designed for enterprise use-cases. The company also plans to invest in building out platform infrastructure, including databases, payments, and hosting capabilities, to support the creation of full applications and services.
Company Location And Leadership Comments
Lovable co-founder and CEO Anton Osika said during an onstage appearance at the Slush conference in Helsinki, Finland, in November that he chose not to move the company to Silicon Valley despite pressure from investors.
Osika said he wanted to demonstrate that it is possible to build a global AI company from Sweden. He added that access to talent improves when a company has a clear mission and operates with urgency.
Tax Issue Disclosure In The EU
In November, Lovable faced public scrutiny after it was reported that the company had not been paying value-added tax, which applies to most goods and services in the European Union. Osika confirmed the issue in a LinkedIn post, stating that the company would address the situation.
He also disabled comments responding to claims that taxes such as VAT make the EU a poor environment for high-growth startups.
Investor Interest In Vibe Coding
Venture capital investment in vibe-coding startups has continued to draw attention. Cursor, another company in the same category, raised $2.3 billion in November at a $29.3 billion valuation. That round marked Cursor’s second funding raise of the year, with its valuation doubling between June and November.
Featured image credits: Lovable
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