Swedish AI startup Lovable has raised $400 million in Series C funding, pushing its valuation to $13.3 billion as investor confidence in AI-powered software development continues to surge.
The Stockholm-based company, known for its AI-powered app and website builder, announced the round on August 12. The financing was co-led by existing investor Menlo Ventures and Scaleup Europe Fund, managed by EQT.
The new valuation is roughly double Lovable’s $6.6 billion valuation from December 2025, when the company raised $330 million in Series B funding.
From natural-language prompts to software
Lovable is part of the rapidly growing “vibe coding” movement, allowing users to create functional websites, applications and software by describing what they want in natural language rather than writing code manually.
The platform has increasingly moved beyond simple prototyping. Lovable has added capabilities for more autonomous development, including planning complex features, executing multi-step tasks and automatically testing applications.
The company says more than 60 million projects have been created on its platform since its launch, highlighting how quickly AI-assisted software development has moved from an emerging concept to a mainstream product category.
Rapid growth attracts major investors
Lovable’s latest funding comes amid exceptional growth. The company reached a $500 million annualized revenue run rate in June 2026, according to TechCrunch.
The startup has also gained traction among large companies. Employees at companies including Nvidia, Adidas and other major enterprises are using Lovable to develop internal tools, prototypes and applications.
Its enterprise ambitions are reflected in recent product development. Lovable has been adding governance and security features designed to make AI-generated software more manageable within larger organizations, including security scanning, publishing controls and workspace-level insights.
Building the “builder economy”
Lovable’s broader vision is not simply to make software development faster for professional engineers. The company argues that AI can dramatically reduce the distance between an idea and a working product, allowing people without traditional coding backgrounds to become software creators.
In a report published earlier this year, Lovable described this emerging trend as the “build economy” — an environment where more people can turn ideas into functioning digital products without needing extensive technical skills or access to large development teams.
The new $400 million investment will give Lovable additional resources to scale its platform, infrastructure and global team as competition intensifies in AI-assisted software development.
With its valuation now at $13.3 billion, Lovable has become one of Europe’s most valuable AI startups — and one of the clearest examples of how quickly the AI coding market is evolving.
Startup: Lovable
Headquarters: Stockholm, Sweden
Sector: AI / Software Development
Latest funding: $400 million, Series C
Valuation: $13.3 billion
Lead investors: Menlo Ventures and EQT’s Scaleup Europe Fund
