Stockholm-based startup Lovable has completed an impressive $330 million Series B funding round. That mighty capital injection has raised its valuation skyward to $6.6 billion. The funding round, which was led by CapitalG and Menlo Ventures, marks another major milestone for the company that specializes in “vibe-coding,” a tool that allows users to generate code and build complete applications using simple text prompts.
Founded in early 2024, Lovable has rapidly made a name for itself on the tech scene. Just eight months after launching, the company made it to a jaw-dropping $100 million ARR run rate. The momentum didn’t stop there, as Lovable went on to double its annual recurring revenue (ARR), crossing the $200mm threshold shortly thereafter.
Anton Osika, Lovable’s co-founder and CEO, attributes the company’s rapid scaling to strategic decisions made early on. Perhaps most impressively, he resisted constant pressure from investors to move the company to Silicon Valley.
“I can sit here now and say, ‘Look, guys, you can build a global AI company from this country.’ There is more available talent if you have a strong mission, and you have a lot of urgency coming together as a group and working.” – Anton Osika
Lovable expects to further develop its new existing funding to integrations with other third-party applications. It’ll beef up its tools specifically catered to enterprise use cases. The company aims to enhance its platform infrastructure, focusing on critical components such as databases, payments, and hosting, necessary for building comprehensive applications and services.
Though it has grown by leaps and bounds and received national accolades, Lovable has recently come under fire for your tax compliance problems. The company has previously been criticized for other violations, including not paying Value Added Tax (VAT). This tax covers nearly all goods and services in the European Union (EU). Osika clapped back at that criticism immediately and clarified that indeed, yes. He spoke of his concern regarding the overall difficult business environment for high-growth startups in the EU.
This past July, Lovable has raised $200 million from a Series A funding round. This funding round valued the company at $1.8 billion. With its recent series A funding round of $105 million, Lovable joins the ranks of innovators shaking up the tech industry. Today, the company is dedicated to improving its product line and expanding its customer base.