Investors get good vibes from Lovable
The Swedish AI company Lovable has raised $330 million, valuing the business at $6.6 billion.
This latest funding round, its Series B, included the venture arms of Nvidia, Salesforce and Databricks and was coled by CapitalG and Menlo Ventures.
It shows the meteoric rise of one of Europe’s leading start-ups and marks a huge jump since its last valuation of $1.8 billion in July, when it raised $200 million, led by Accel.
The tech business, which only launched its product in November last year, allows users to describe the app or website they want and Lovable will generate it. Known as “vibe coding”, it has caught the zeitgeist to such an extent, that it was the Collins Dictionary’s word of the year, defined as the use of artificial intelligence to turn natural language into computer code.
Anton Osika, chief executive, and Fabian Hedin founded Lovable in 2023 to “democratise software creation for the 99 per cent”, meaning that everyone could build apps, not just the 1 per cent who know how to code.
Osika gave examples of users including a nurse at one of the world’s largest healthcare organisations who built an app to show patient journeys which is now included with every invoice sent out.
“The new builders span every age group, socioeconomic bracket, and geography. Some sit in dorm rooms, others sit in board rooms,” he said.
Lovable now employs 120 people and is opening offices in Boston and San Francisco. Early backers included fellow European entrepreneurs Sebastian Siemiatkowski, the chief executive of Klarna, and Nik Storonsky, chief executive of Revolut.
Lovable claims to have $200 million annual recurring revenue, double its July figure, 5 million daily users and half a billion visits to sites built by its software in the past six months.
Laela Sturdy, of CapitalG said: “Lovable has done something rare: built a product that enterprises and founders both love. The demand we’re seeing from Fortune 500 companies signals a fundamental shift in how software gets built”.
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