Vibe Coding Startup Lovable Hits $6.6B Valuation After $330M Raise

Lovable, a Swedish vibe-coding firm, has increased its valuation by over three times in just five months. The firm based in Stockholm, announced on Thursday that it has raised $330 million at a valuation of $6.6 billion in a Series B fundraising round headed by CapitalG and Menlo Ventures. Other investors also took part, including Salesforce Ventures, Databricks Ventures, and Khosla Ventures.

Lovable raised a $200 million Series A investment in July, valuing the company at $1.8 billion, just months before to this financing.

Lovable, one of the first and fastest company to profit from the AI boom, has developed a “vibe-coding” tool that enables users to write code and create entire applications using text suggestions.

Since its founding in 2024, the business has expanded extraordinarily quickly. In just four months, it doubled its annual recurring revenue to approach $200 million, surpassing the prestigious $100 million ARR milestone in just eight months.

The company says that more than 100,000 new projects are developed on its platform every day and that more than 25 million projects were created in its first year. Notable software companies that use the platform include Klarna, Uber, and Zendesk.

Lovable stated that it will utilise the additional capital to expand its capabilities for enterprise use-cases, develop deeper interfaces with third-party apps, and expand its platform with the infrastructure required to create full-fledged applications and services, such as databases, payments, and hosting.

Anton Osika, the CEO and co-founder of Lovable, stated onstage at this year’s Slush conference in Helsinki, Finland, that he attributes the company’s growth to his choice to reject investors’ requests to move the business to Silicon Valley.

Onstage at the November conference, Osika remarked, “It was tempting, but I really resisted that.” “Look, guys, you can build a global AI company from this country,” I said, sitting here. If you have a clear objective and a strong sense of urgency to unite as a team and work together, there is more talent available.

The business received criticism in November for failing to pay VAT, a tax that is levied on the majority of goods and services in the European Union (EU). In a LinkedIn post, Osika affirmed that this was the case, stating that the company would address the issue and removing comments that claimed the EU isn’t a suitable location for high-growth firms because of levies like these.

VCs are still quite interested in investing in vibe coding. Another vibe-coding darling, Cursor, raised $2.3 billion at a valuation of $29.3 billion in November, even with the recent introduction of an AI coding tool for designers earlier this month. Similar to Lovable, this was the company’s second investment round of the year, and between June and November, its worth doubled.

The future plan of the platform will be transformed from a prototyping tool into a reliable production environment with the help of the additional funding with specific objectives consist of:

• Enterprise Features: Growing and increasing the infrastructure and collaboration tools for extensive business use.
• Third-Party Integrations: Creating stronger ties with services like Notion for document management and Stripe for payments.
• Global Expansion: Keeping its headquarters in Stockholm, Sweden, while establishing new offices in Boston and San Francisco.

“Vibe-coding” is a term that is used in an AI-native programming methodology in which users explain their concepts in simple English. The AI agent then creates, tests, and launches full-stack apps on its own, therefore decreasing the entrance barrier for non-technical builders and speeding up professional developers’ workflows.