Lovable raises $330M at $6.6B valuation, tripling in five months with vibe-coding platform

TechCrunch
TechCrunch
2h ago
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Lovable raised $330M at $6.6B valuation, tripling since July, driven by its AI vibe-coding platform surpassing $200M ARR.
Lovable raises $330M at $6.6B valuation, tripling in five months with vibe-coding platform
A What happened
Lovable, a Stockholm-based startup, raised $330 million in a Series B round led by CapitalG and Menlo Ventures, tripling its valuation to $6.6 billion in five months. The company surged past $200 million in annual recurring revenue within a year, offering a vibe-coding platform that uses text prompts for app creation. Major clients include Uber and Klarna. The funds will expand enterprise features and build infrastructure like databases and hosting. Lovable bucked investor pressure to relocate to Silicon Valley, showcasing Europe's competitiveness in AI innovation. The company faced criticism over EU VAT tax compliance but plans to address it. This funding comes amid a wider boom in AI code generation startups, reflecting intense VC interest in this fast-growing sector.
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Key insights

  • 1

    Europe's growing stake in AI innovation: Lovable’s rapid scaling from Stockholm and rejection of Silicon Valley relocation challenges the narrative that leading AI startups must be U.S.-based.

  • 2

    AI developer tools attracting massive investment: The vibe-coding segment is drawing major venture capital, reflecting a structural shift towards AI-assisted software development and automation.

  • 3

    Tax compliance emerges as a regulatory risk: Lovable’s VAT controversy highlights regulatory complexities for fast-growing tech companies operating within the EU market.

Takeaways

Lovable’s surge exemplifies how AI-driven software tools are transforming development workflows and attracting substantial capital. Their European base underscores growing geographic diversification in AI innovation despite regulatory challenges.

Topics

Technology & Innovation Artificial Intelligence Business & Markets Startups/VC World & Politics Policy & Regulation