Lovable Triples Valuation to $6.6B in 5 Months: Inside the AI Vibe-Coding Boom
A Swedish startup just proved you don’t need Silicon Valley to build a global AI giant.
Stockholm-based Lovable has raised $330 million in a Series B round led by CapitalG and Menlo Ventures, lifting its valuation to $6.6 billion. The round comes just five months after a $200 million Series A that valued the company at $1.8 billion, and only one year after its 2024 launch.
What makes the numbers even more impressive is the revenue velocity. Lovable hit $100 million in annual recurring revenue (ARR) within eight months of launching and doubled that to more than $200 million ARR just four months later. The platform now powers over 100,000 new projects daily and claims more than 25 million projects created in its first year. Customers include major software players like Klarna, Uber, and Zendesk.
The product at the center of this growth is a “vibe-coding” tool that lets users turn plain-language prompts into full applications. Instead of hand-writing every line of code, builders describe what they want, and the platform generates working software. This approach reduces the barrier to app creation and accelerates prototyping and production for teams of all sizes.
Lovable says the new capital will be used to deepen integrations with third-party apps, expand features tailored to enterprise use-cases, and add the infrastructure needed to build complete applications—from databases and payments to hosting. That suggests a move beyond rapid prototyping into the full-stack workflow where teams ideate, build, and deploy without stitching together multiple tools.
One strategic edge has been a steadfast commitment to remaining in Stockholm. CEO Anton Osika resisted investor calls to relocate to Silicon Valley, arguing that a strong mission and local talent pool can sustain high-growth AI development from Europe. “You can build a global AI company from this country,” he said at the Slush conference in Helsinki. Staying put also helps attract mission-driven engineers and fosters urgency and cohesion, factors that can be crucial when scaling at breakneck speed.
The funding surge doesn’t come without scrutiny. Lovable recently acknowledged it wasn’t paying VAT, a tax on most goods and services in the EU. Osika confirmed the issue on LinkedIn and said the company would remedy the situation. The episode touches on broader debates about how regulatory frameworks interact with fast-moving startups, but it also underlines that sustainable growth includes compliance as companies mature.
The momentum around vibe coding is broader than one startup. In November, Cursor—an AI-assisted coding platform—raised $2.3 billion at a $29.3 billion valuation, doubling its valuation since June. The investment appetite signals strong conviction that AI-powered coding isn’t a niche tool, but a foundational layer for how modern software gets built.
For developers, product managers, and founders, the takeaway is clear: prompt-based creation is moving from novelty to necessity. As these platforms add enterprise integrations and full-stack infrastructure, the playbook for shipping software will increasingly emphasize speed, iteration, and composition over isolated coding tasks. Lovable’s rise—from zero to $200 million ARR in about a year—shows just how quickly the landscape is changing and how AI-fueled “vibe coding” is becoming a core part of the modern development stack.
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