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The two-year Swedish artificial intelligence startup, which promises to be as easy to program as writing some sentences, is approaching a nearly $2 billion valuation, the latest indication of investors in the AI ​​coding business.
According to those familiar with the deal, Lovable is set to raise more than $150 million in funding within six months of the previous round, making it one of Europe’s fastest growing AI startups.
Venture Capital Group Accel is leading the round, with existing investors like 20VC and Creandum also taking part in, these people said.
The lovable ones have increased the amount raised during the funding process and its valuation, they added, due to overwhelming interest from investors. The deal, which has not yet been confirmed, is set to be loved for around $1.8 billion.
Lovely refused to comment on the funding. Accel did not respond to requests for comment.
Europe is generally seen as lagging behind the US and China in its generator AI, especially when it comes to basic models where chatbots such as Openai’s ChatGpt and Google’s Gemini are built.
However, Lovable is one of the new crops of European AI startups working primarily on applications and services aimed at companies. Companies such as Mistral, Synthesia and Deepl, as well as defense technology groups, Helsing is currently raising funds at a multi-billion dollar valuation.
Lovable is the latest example of investors rushing to back up “vibe coding” startups as software engineering tools emerge as one of the most effective ways to commercialize generative AI technology.
Former Tesla and Openai engineer Andrej Karpathy created the phrase “atmosphere coding” in February, explaining the near-trance state of using AI to create software.
Lovable was founded in Stockholm in 2023 and launched AI coding products later last year, quickly attracting attention for its ability to enable people with no technical expertise to create fully functional apps and websites.
Its programming tools utilize the output of various AI models such as OpenAI, Anthropic, Google, and more. Lovable adjusts the code to be created to suit the type of app that users want to build.
The company raised $15 million in February in a deal led by early Spotify investor Creandum. At the time, Lovable said it had reached $17 million with annual revenue and over 30,000 paying customers within three months.
Lovable now generates $75 million in annual recurring revenue just seven months after its launch.
“It’s Europe’s fastest growing company,” one investor said. “I’ve never seen a company grow so quickly.”
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Coding Assistant quickly became a busy field as AI systems for software programming from Microsoft, Openai and the Jostle of Mankind were being coordinated using start-up tools including Aysphere, Poolside, Bolt and Replit. The design software apps Figma and Canva have also added AI features.
Anysphere, a US-based manufacturer of cursor coding assistants, raised $900 million in May, tripled its valuation to $9 billion in the first half of this year.
Lovable investors say that the differentiator is that anyone can create a complete app or website, even if they have no experience in coding. Open the market to consumers, small businesses, and corporate leaders who want to prototype their own ideas. Meanwhile, tools such as cursors are designed to help more experienced programmers.
