Swedish AI Startup Lovable Nears $100M Funding at $1.5B Valuation

Lovable, a Swedish AI startup founded in 2023, is in early-stage talks with U.S. investors to raise at least $100 million in funding, potentially valuing the company at $1.5 billion or more. The company specializes in 'vibe coding,' a technology that allows individuals with minimal or no programming experience to create apps and websites using natural language, and currently serves 130,000 paying customers. Lovable has experienced rapid growth, with annual recurring revenue rising from $50 million to $61 million within six months of launching its first product, and its business offerings account for one-fifth of sales, growing quickly. CEO Anton Osika highlighted the unprecedented investor interest but noted that the company does not currently need cash, reflecting a favorable market landscape. Despite recent reports of security vulnerabilities in apps created by Lovable’s AI, the company has resolved these issues and enhanced its security features. Lovable's rise places it among Europe’s fastest-growing AI newcomers, alongside other key players in the vibe coding space such as Anysphere and Windsurf.