Lovable, a Vibe-Coding Startup, Secures $330M at $6.6B Valuation

Lovable, a Swedish startup focused on "vibe-coding," announced a significant Series B funding round of $330 million, valuing the company at $6.6 billion. This represents more than a threefold increase in valuation in just five months.

The funding round was led by CapitalG and Menlo Ventures, with participation from Khosla Ventures, Salesforce Ventures, Databricks Ventures, and other investors. This follows a Series A round in July, where Lovable raised $200 million at a $1.8 billion valuation.

Lovable, which launched in 2024, provides a tool that allows users to generate code and build applications using text prompts. The company has experienced rapid growth, achieving $100 million in annual recurring revenue (ARR) within eight months and doubling that to over $200 million ARR just four months later.

The company's customer base includes major software companies such as Klarna, Uber, and Zendesk. Lovable reports that over 100,000 new projects are built on its platform daily, and more than 25 million projects were created during its first year.

Lovable plans to use the new capital to develop deeper integrations with third-party applications, expand its enterprise-focused features, and enhance its platform with infrastructure to support the development of complete applications and services, including databases, payments, and hosting.

At the Slush conference in Helsinki, Finland, Lovable co-founder and CEO Anton Osika attributed the company's scaling success to his decision to resist pressure from investors to move the company to Silicon Valley. He emphasized the availability of talent and the importance of a strong mission in building a global AI company from Sweden.

In November, Lovable addressed an issue regarding unpaid VAT (Value Added Tax). Osika confirmed the issue in a LinkedIn post, stating that the company would rectify the situation. He also shut down comments suggesting that such taxes make the EU an unfavorable environment for high-growth startups.

Vibe coding is attracting substantial venture capital investment. Cursor, another company in the space, raised $2.5 billion in November, reaching a $29.3 billion valuation. Similar to Lovable, Cursor also experienced a doubling of its valuation within a few months, marking its second funding round this year.

TechCrunch has reached out to Lovable for further details.