Lovable Raises $400 Million at a $13.3 Billion Valuation

Lovable, the Stockholm startup that lets people build software by describing it in plain language, has raised $400 million in a round that values it at $13.3 billion. That is roughly double the $6.6 billion figure it carried last December, a repricing that took about eight months.

The round was led by Menlo Ventures and the Scaleup Europe Fund, with new backers from Latin America and Asia including Tencent, according to TechCrunch and Bloomberg. For Menlo, Lovable is now its largest single bet after Anthropic, which tells you where the firm thinks this is heading.

The numbers behind the number

Valuations in AI have detached from gravity often enough this year that a fresh one barely registers. What makes Lovable's stand out is the revenue underneath it. The company hit a $500 million annualised run rate in June, launched only in late 2024, and says it is on track for close to $600 million by the end of this month. Growth like that is why the round came together fast and priced high.

Lovable sits in the category the industry has taken to calling vibe coding, where a user types a request in ordinary sentences and the tool assembles a working app. It competes with a crowded field that now includes Anthropic and offerings from the larger labs. The pitch that keeps recurring from its founders is a bold one, that Lovable wants to be close to the last piece of software a company ever needs to buy, since it can generate the rest on demand.

A crowded, well-funded lane

The money pouring into AI coding tools is not landing on Lovable alone. It reflects a bet across the sector that writing software in natural language is a genuine shift rather than a demo, and that the winners will be very large. Whether a young company can hold its ground against labs that own the underlying models is the open question. Lovable builds on other companies' AI; those companies are increasingly building coding tools of their own.

For now, the market has voted with its wallet. A $13.3 billion valuation on a company not yet two years old is either early proof of a durable business or another line on the year's long list of AI numbers that will look strange in hindsight. The run rate suggests it is more than vapour. The competition suggests the hard part is still ahead.