Lovable’s valuation doubles to $13.3BN as raises new funds

Sweden-based startup Lovable has seen its valuation soar to $13.3 billion, after raising a substantial $400 million in fresh funding. This represents a significant jump from its last funding round, where the company's valuation was $6.6 billion. The new round was co-led by Menlo Ventures from Silicon Valley and the Scaleup Europe Fund, managed by EQT.

Notable participants in this round included Balderton Capital, Carmignac, Kaszek Ventures, LTS Growth, Tencent, World Innovation Lab, Regent, and a host of other investors, including some who were returning backers such as Accel, Antler, CapitalG, DST Global, Evantic Capital, HubSpot Ventures, and Salesforce Ventures.

Launched in 2024, Lovable empowers non-coders to create software through a method called vibe-coding. The company is set to continue utilizing multiple AI models to enhance its technology, tailoring each part of the work to the most suitable model, and then integrating the outcomes into a cohesive user experience. Additionally, Lovable plans to refine its models through post-training, aiming to make the Lovable experience more personalized to individual users' objectives, contexts, and working styles.

Facing competition from tech giants like Replit, as well as other AI-driven startups, Lovable remains optimistic. The platform has already garnered over 900 million monthly visits from users who build apps on its platform. Based in Stockholm and serving clients such as Nvidia, Adidas, and Zendesk, Lovable intends to use the new funds to accelerate its growth, with plans to double its workforce to 450 employees by the end of the year.

This expansion is slated to occur in both Sweden and the US. Looking forward, Lovable aims to move beyond mere prompt-based interactions, introducing a more proactive approach to engage its users. Menlo Ventures partner Matt Murphy expressed confidence in the startup, highlighting Lovable's mission to democratize software creation by removing the barrier of technical expertise for those with ideas and creativity.