Venture capital group Accel was leading the round, with existing investors such as 20VC and Creandum also participating, these people said. <\/p>\n
Lovable increased the amount of money raised and its valuation during the fundraising process due to overwhelming interest from investors, they added. The deal, which is still to be finalised, is set to value Lovable at about $1.8bn.<\/p>\n
Lovable declined to comment on its fundraising. Accel did not respond to a request for comment. <\/p>\n
Europe has generally been seen as lagging behind the US and China in generative AI<\/a>, especially when it comes to the foundation models upon which chatbots such as OpenAI\u2019s ChatGPT and Google\u2019s Gemini are built. <\/p>\n However, Lovable is one of a new crop of European AI start-ups, mainly working on applications and services aimed at businesses. Companies such as Mistral, Synthesia<\/a> and DeepL \u2014 as well as defence tech group Helsing \u2014 are now raising funds at multibillion-dollar valuations. <\/p>\n Lovable is also the latest example of investors rushing to back \u201cvibe coding\u201d start-ups, as software engineering tools emerge as one of the most effective ways to commercialise generative AI technology. <\/p>\n Andrej Karpathy, a former Tesla and OpenAI engineer, coined the phrase \u201cvibe coding\u201d in February to describe an almost trance-like state of using AI to create software \u201cwhere you fully give in to the vibes, embrace exponentials, and forget that the code even exists\u201d. <\/p>\n Lovable was founded in Stockholm in 2023 and launched its AI coding product late last year, quickly attracting attention for its ability to let people with no technical expertise create fully functioning apps and websites. <\/p>\n Its programming tool draws on the output of various AI models, including from OpenAI, Anthropic and Google. Lovable then adapts their code to create for whatever kind of app the user wants to build. <\/p>\n The company raised $15mn in February in a deal led by Creandum, an early Spotify investor. At the time Lovable said it had reached $17mn in annual recurring revenue and more than 30,000 paying customers within three months.<\/p>\n Lovable now generated $75mn of annual recurring revenue, just seven months after its launch, its chief executive and co-founder Anton Osika said last week<\/a>. <\/p>\n \u201cThis is by far Europe\u2019s fastest-growing company ever,\u201d said one investor. \u201cI\u2019ve never seen a company grow this fast.\u201d <\/p>\n Recommended<\/p>\n
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