Lovable, the Stockholm-based artificial intelligence startup riding the surge of interest in so-called “vibe coding,” has vaulted into the top tier of Europe’s startup ecosystem after a new funding round valued the company at $6.6 billion, according to people familiar with the deal who spoke to CNBC.
The round, which has not yet been formally announced, includes U.S. venture capital firm Accel, a returning investor that has become one of the most influential backers of AI-native software companies. Khosla Ventures is also participating, one of the sources said. Both spoke on condition of anonymity because the transaction is private. Forbes reported in November that Lovable was raising at a valuation of around $6 billion.
If confirmed, the deal marks a dramatic step-up from Lovable’s $1.8 billion valuation in July, when it raised $200 million. The new price tag means Lovable has more than tripled its valuation in a matter of months, making this its third funding round in 2025 and underscoring the intensity of investor demand for fast-growing AI developer platforms.
Founded in 2023, Lovable has become one of the fastest-scaling software companies in Europe. In November, the company disclosed that it had reached $200 million in annual recurring revenue, an extraordinary jump from the $1 million ARR milestone it crossed less than a year earlier. At the time, Lovable said users were creating roughly 100,000 projects per day on its platform, a figure that highlights both strong adoption and heavy daily usage.
Lovable’s core product allows users to build applications and websites through natural language prompts, without needing to write code. The platform relies on large language models from providers such as OpenAI and Anthropic, translating text instructions into functioning software. This approach has resonated with founders, designers, and small teams that want to move quickly, as well as with more experienced developers looking to speed up prototyping and iteration.
The company’s rise places it at the center of a broader shift in how software is created. Investors increasingly believe that AI-assisted development tools can dramatically expand the number of people who are able to build digital products, lowering technical barriers and compressing development timelines. That thesis has already driven eye-catching valuations in the United States, where Anysphere, the maker of coding tool Cursor, raised $2.3 billion at a $29.3 billion valuation in November.
Replit reached a $3 billion valuation after a $250 million round in September, while Vercel closed a $300 million funding round valuing it at $9.3 billion.
Against that backdrop, Lovable’s valuation looks less like an outlier and more like Europe’s answer to a U.S.-dominated category. Accel’s continued backing is notable in that context. The firm has emerged as a key conduit for capital flowing into “vibe coding” startups, having also participated in billion-dollar rounds for Cursor and for Thinking Machines, the AI company founded by former OpenAI executive Mira Murati.
Lovable’s July funding round already drew a mix of prominent European and global names, including Creandum, Klarna founder Sebastian Siemiatkowski, ElevenLabs founder Mati Staniszewski, and Synthesia founder Victor Riparbelli. The fresh capital further strengthens its balance sheet as competition intensifies and as well-funded rivals push aggressively to capture developers and non-technical users alike.
The company is also signaling global ambitions. While headquartered in Stockholm, Lovable is opening offices in Boston and San Francisco, a move that would put it closer to major customers, partners, and talent pools in the U.S. market. That expansion suggests the company sees itself not as a regional champion but as a global contender in AI-powered software creation.
The key question for investors will be whether Lovable can sustain its growth trajectory as the market matures and as large AI model providers continue to move up the stack, offering more end-to-end product-building tools themselves. For now, the latest funding round confirms that capital markets are willing to pay a premium for companies that sit at the intersection of AI infrastructure and everyday productivity.
In doing so, Lovable has become a rare example of a European startup reaching multi-billion-dollar valuation territory at speed, reinforcing the view that the next wave of globally significant AI companies will not be built in Silicon Valley alone.
