Dec 18 (Reuters) – AI software development startup Lovable said on Thursday it raised $330 million in an early-stage funding round that values the Stockholm-based company at $6.6 billion.
Alphabet’s CapitalG and Menlo Ventures led the round, which nearly quadruples Lovable’s valuation in less than six months.
The deal also drew investment from Nvidia’s venture capital arm among others, underscoring investor demand for agentic AI tools that can handle complex software development work with minimal human input, as enterprises and hobbyists increasingly adopt AI-assisted coding.
Lovable’s sharp jump in value comes amid a boom in “vibe coding,” in which users describe a project in plain language and expect AI to generate a full program.
Competitors including Replit, OpenAI, Google and Cursor offer similar products aimed at the growing market for agentic software development.
The company hit $100 million in annual recurring revenue in the summer, about eight months after reaching its first $1 million, and now ranks among Europe’s most valuable private technology firms. A funding round that closed in July valued it at $1.8 billion.
A roster of strategic backers also joined in the latest funding round, including the venture arms of Salesforce, Databricks, and Atlassian.
Lovable said it will use the new capital to expand enterprise features, strengthen collaboration tools and scale infrastructure as usage grows.
Founded in late 2023 by Anton Osika and Fabian Hedin, Lovable quickly gained traction with users and venture capital alike by enabling non-technical founders and teams to build and iterate on digital products without traditional coding expertise.
(Reporting by Arnav Mishra in Bengaluru; Editing by Tasim Zahid)
Comments