Swedish AI software company Lovable has raised $400 million in a Series C funding round, giving the company a valuation of $13.3 billion. The round was led by Menlo Ventures and the EQT-managed Scaleup Europe Fund, with participation from a group of international and existing investors. The new valuation more than doubles Lovable’s previous $6.6 billion valuation, highlighting the rapid growth in investor interest in AI-powered software development. 

Lovable operates an AI-powered “vibe coding” platform that allows users to create applications, websites and other digital products using natural-language instructions instead of traditional programming. The platform has experienced rapid adoption, with more than 60 million projects created since its launch. The company has also reported annual recurring revenue of around $500 million, demonstrating the commercial growth of AI-assisted software development. 

The investment represents an early major transaction for the Scaleup Europe Fund, which has a target size of €5 billion and is managed by EQT. The fund was established as part of the European Union’s efforts to address the funding gap faced by European technology scaleups. It is intended to provide growth capital to European companies in areas including artificial intelligence, quantum technologies, semiconductors, clean energy, space, biotechnology and advanced industrial technologies. 

For Lovable, the funding will support its continued expansion and development of its AI software-building platform. The company is seeking to move beyond simply helping users create software and toward providing tools that allow businesses to build, operate and manage digital products. Its rapidly increasing valuation also positions Lovable among Europe’s most highly valued private AI companies and reflects the growing global competition in AI-assisted software development.