Lovable in talks to double startup valuation to $13.2B with $300M raise from Menlo Ventures

Lovable Seeks to Double Startup Valuation in Six Months

Lovable, the Swedish vibe-coding startup, is in talks to raise $300 million at a $13.2 billion valuation, exactly double the $6.6 billion it commanded during its Series B round last December, according to reports from Sifted 1

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. Menlo Ventures, which recently announced its latest $3 billion fund, is expected to lead the Lovable funding round 1

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. The discussions remain ongoing, and the final figures could shift before any deal closes 2

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Founded in 2023 by Anton Osika and Fabian Hedin, Lovable allows non-technical users to build software by describing it through plain-text prompts . This approach has propelled the company to become one of the fastest-growing software startups on record, hitting $100 million in annual recurring revenue within eight months of launch, then doubling that figure months later .

Explosive Growth with Minimal Headcount

The less-than-three-year-old startup surpassed $500 million in annualized revenue in June, achieving this milestone with just 146 staff members 1

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. Roughly a million new projects now start on the platform each week, demonstrating the scale and velocity of adoption . Lovable's users span founders, individual designers, and salespeople building websites and e-commerce storefronts, while the company also sells its vibe-coding tool to large enterprises including Workday, Asana, and Nvidia 1

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Vibe Coding Emerges as AI's Most Lucrative Application

Vibe coding has become the most popular and lucrative use case for AI application development in the AI-driven sector 1

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. The category's promise lies in collapsing software creation into conversation, attracting users who never wrote code and drawing substantial investor capital chasing the next platform shift . Other high-profile competitors in the space include Replit, valued at $9 billion in March, and Factory, which raised $150 million at a $1.5 billion valuation in April 1

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. Cursor, which offers vibe coding for developers, was acquired by SpaceX for $60 billion last month, underscoring the sector's explosive trajectory 1

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European Tech's Confidence Test

Lovable's rise serves as a rallying point for European tech, a sector often criticized for underpowering its startups . Chief executive Anton Osika has argued that Europe's AI companies face a confidence problem rather than a talent problem, and a $13.2 billion valuation would represent a loud rebuttal to that pessimism . Osika shared the stage with entrepreneur Mark Cuban at the Raise summit in Paris, giving the founder a timely platform as the raise talks circulated .

Security Concerns and Sustainability Questions

Rapid growth has brought challenges. Lovable experienced a security episode that left projects exposed, highlighting how speed-built apps can ship real vulnerabilities . The proposed valuation also rides an AI-funding wave that not everyone believes is sustainable, with doubling in six months fueling bubble talk when sentiment shifts . For now, momentum remains undeniable, and a $500 million revenue run-rate provides more grounding than most AI startups can claim. Whether the deal closes at $13.2 billion and holds will be answered in the coming months .