Swedish AI startup Lovable is reportedly raising over $150 million in a new funding round that values the company at nearly $2 billion. This round is led by the prominent venture capital firm Accel, with participation from other investors including Creandum and 20VC.
Let’s look at details about Lovable and the Funding Round:
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Valuation and Funding:
The new funding round is expected to exceed $150 million, pushing Lovable’s valuation close to $2 billion, a significant leap just months after a $15 million pre-Series A round in February 2025. -
Business and Technology:
Lovable specializes in “vibe coding,” a generative AI platform that enables users—especially non-technical ones—to build full-stack web apps and websites from simple text prompts. This no-code solution leverages AI models from OpenAI, Anthropic, and Google to democratize software creation. -
Growth Metrics:
Since launching its flagship product in late November 2024, Lovable has experienced rapid growth. By May 2025, the company reported reaching $50 million in annual recurring revenue (ARR), which reportedly increased to $75 million ARR by early July 2025. The platform claims over 500,000 users and 30,000 paying customers, with users building about 25,000 new products daily. -
Market Position:
Lovable is considered one of Europe’s fastest-growing AI startups and a pioneer in AI-driven no-code development tools. It is part of a wave of European AI startups focusing on AI agents and generative AI technologies, a sector attracting substantial investor interest. -
Investor Confidence:
The strong backing from leading venture capital firms and notable angel investors reflects high confidence in Lovable’s innovative approach and market potential.
Lovable’s upcoming $150 million+ funding round at nearly $2 billion valuation marks a remarkable milestone for the young Swedish AI startup. Its innovative vibe coding platform is rapidly gaining traction, enabling users to create apps with AI-generated code, fueling fast revenue growth and strong market interest in democratizing software development through AI.