Lovable raises $400m backed by EU’s Scaleup Fund

Vibe coding platform Lovable has secured $400 million in funding, pushing its valuation to $13.3 billion. The Series C round was led by Menlo Ventures and the Scaleup Fund, a European investment vehicle overseen by EQT. The Scaleup Fund aims to address the shortage of late-stage capital in Europe, specifically targeting growth-stage companies in strategic sectors such as deep tech, life sciences, clean tech, advanced manufacturing, and digital technologies.

This is Lovable's third round of funding, following a $200 million Series A in June and a $330 million Series B in December. Both previous rounds were led by Menlo Ventures and brought the company's valuation to $6.6 billion. Other notable investors in the latest round include CapitalG, Salesforce Ventures, NVentures, DST Global, Khosla Ventures, and Creandum. Balderton Capital also joined Lovable's investor list in this recent funding round.

Founded in 2024, Lovable is based in Stockholm and has reached $500 million in annual recurring revenue (ARR) as of June. The company aims to achieve a 65% margin by the second half of 2026. The EU's €5 billion Scaleup Fund was established at the end of last year to support growth-stage companies working in strategic sectors, with EQT tasked with managing the fund since May.

The fund's mandate may also include companies working on "application layer" AI, which develop use cases for AI rather than the underlying models themselves.