Round co-led by Menlo Ventures and EU’s Scaleup Europe Fund
Lovable, a Stockholm-based artificial-intelligence startup whose platform lets users build software and web applications using plain-language prompts in what has been called vibe-coding, raised $400 million in a new funding round that values the company at $13.3 billion. That is more than double the $6.6 billion mark it reached in December, and catapults the business into the ranks of Europe’s most valuable startups.
The deal was co-led by Silicon Valley investor Menlo Ventures and the European Commission’s newly created Scaleup Europe Fund, a vehicle overseen by Swedish asset manager EQT. The company and its investors confirmed the round.
Other backers include Balderton Capital, World Innovation Lab and Chinese tech firm Tencent.
Launched in November 2024, Lovable allows users without traditional programming backgrounds to assemble applications for functions ranging from human resources to sales to finance. Some startup founders now run their entire businesses on software built with Lovable, said Anton Osika, the company’s chief executive and co-founder.
Clients already using the platform include chipmaker Nvidia, sportswear company Adidas, publisher Hearst and software-as-a-service provider Zendesk. Nvidia uses Lovable to develop customized internal tools that help team leaders track projects and ensure they are delivered on time.
The startup is on track to hit a revenue run rate — a metric that projects annual revenue based on short-term sales — of close to $600 million by the end of this month, nearly triple the figure it disclosed in December. The company had previously been profitable but is now focused on reinvesting in product and growth, Osika said.
Lovable’s rise has unfolded alongside investor anxiety that AI-built applications could displace established business-software companies in what has been dubbed a “SaaSpocalypse.” Zendesk, despite using Lovable, does not view it as a direct threat.
“Lovable can’t provide the level of reliability at scale” to manage customer requests across different channels, said Jorge Luthe, a senior director of product at Zendesk.
Lovable plans to deploy the new capital to grow its workforce by 50% to 450 employees this year across offices in Europe and the U.S., and to fuel growth in regions including Latin America. It is also working to add more security features and improve platform reliability.
Following the latest fundraising, Lovable will be Menlo Ventures’ largest single investment after Anthropic — “a testament to how bullish we are on Lovable’s outlook,” said Matt Murphy, a partner at Menlo Ventures.
For the EQT-managed Scaleup Europe Fund, the investment will serve as an early test of the vehicle’s ability not only to support European startups but to persuade them to resist relocating to the U.S. as they scale.
If startups like Lovable end up being backed predominantly by U.S. investors, “the shift towards relocating headquarters or listing in the U.S. becomes powerful,” undermining development of cutting-edge technology in Europe, said EQT partner Victor Englesson.
Lovable operates in a competitive environment. Rival Replit, based in California, reached a $9 billion valuation in a March funding round — triple its level six months earlier.