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Swedish AI Startup Lovable Eyes $3 Billion Funding, Valuation Could Hit $13.2 Billion

Swedish AI startup Lovable, known for its 'vibe-coding' technology, is negotiating a new funding round of up to $3 billion. If successful, the company's valuation would double from $6.6 billion last December to $13.2 billion. Menlo Ventures, which recently announced a new $3 billion fund, is expected to lead the round.

Founded less than three years ago, Lovable has grown at a blistering pace. In June, it hit $500 million in annualized revenue. Its core product is a vibe-coding tool that lets users build software just by describing it in natural language. The tool has attracted a broad user base, including founders, independent designers, and e-commerce sellers, and has also entered the enterprise market, adopted by tech giants like Workday, Asana, and Nvidia.

Lovable's explosive growth reflects the high demand for vibe-coding technology in the AI sector. This AI-driven software development model, which lowers the barrier to entry, has become one of the most lucrative application scenarios. In March, similar startup Replit was valued at $9 billion; in April, Factory, which helps businesses develop AI agents, reached a $1.5 billion valuation. Last month, SpaceX acquired Cursor, a vibe-coding service for developers, for $6 billion. These high-value acquisitions and surging valuations signal that AI is transforming traditional software engineering.

Key Points

  • Lovable is raising $3 billion, aiming for a $13.2 billion valuation.
  • The company achieved $500 million in annualized revenue in June.
  • Its vibe-coding tool allows software creation through natural language.
  • Clients include Workday, Asana, and Nvidia.
  • The vibe-coding market is heating up, with Replit and Factory also seeing high valuations.