A Swedish startup is on the verge of a massive valuation jump
Just six months after being valued at $6.6 billion, Lovable is back at the negotiating table. The Stockholm-based company is reportedly in talks to raise $300 million at a valuation of $13.2 billion — exactly double what it was worth last December, according to a report from Sifted.
If the deal goes through, it would mark one of the fastest valuation doublings in European tech history for a company that hasn’t even turned three.
Who’s leading the round
Menlo Ventures, which announced a fresh $3 billion fund just last month, is expected to lead the new investment, sources told Sifted. The firm has been aggressively backing AI-native companies, and Lovable fits squarely in that thesis.
The round hasn’t closed yet, and terms could still shift. But the rumored numbers suggest serious investor confidence in what Lovable is building.
Vibe coding is the engine
Lovable’s product is a so-called “vibe coding” tool. The concept is simple: instead of writing code line by line, users describe what they want in plain language, and the AI builds the software. It’s aimed at founders, designers, and salespeople who need websites or e-commerce storefronts — not professional developers.
That pitch has clearly resonated. In June, Lovable hit $500 million in annualized revenue run rate. For a company founded in late 2022, that’s an extraordinary number.
Vibe coding is quickly becoming the most lucrative use case for generative AI. Replit, another player in the space, was valued at $9 billion in March. Factory, which helps enterprises build AI agents, raised $150 million at a $1.5 billion valuation in April. And Cursor, which targets developers specifically, was acquired by SpaceX for a staggering $60 billion last month.
Enterprise customers are buying in
Lovable isn’t just for solo founders and freelancers. The company has landed enterprise deals with major names including Workday, Asana, and Nvidia. That mix of SMB and enterprise revenue gives the startup a diversified base — and makes the valuation easier to justify.
It also signals that vibe coding is moving beyond the hype phase. Large organizations are willing to pay for tools that let non-technical employees build software without IT bottlenecks.
What this means for the European tech scene
A $13.2 billion valuation would place Lovable among Europe’s most valuable private tech companies. It would also put pressure on other European AI startups to show similar growth trajectories.
The speed of the valuation increase — from $6.6 billion to $13.2 billion in roughly six months — raises obvious questions about market froth. But Lovable’s revenue numbers are real, and its customer list is growing. For now, investors seem to be betting that the vibe-coding category has legs.
Whether that bet pays off depends on how many businesses actually adopt the tool for mission-critical work, not just quick prototypes. But at $500 million in annualized revenue, Lovable is already proving it can convert interest into cash.
