Lovable on track to raise $150M at $2B valuation

Lovable, a standout player in the vibe coding sector and one of Europe's rapidly expanding AI startups, is embarking on an ambitious journey to secure over $150 million in funding, pushing its valuation close to $2 billion, according to a report by the Financial Times. This funding effort follows a recent $15 million investment round led by Creandum in February. Lovable characterized that round as 'pre-series A', but given the magnitude of this new funding, it’s clear that the company has swiftly transitioned from seed funding to significant growth rounds, regardless of the technical terminology. Accel is reportedly spearheading this latest fundraising initiative, with participation from Creandum and other investors like 20VC. Although Lovable was founded just two years ago in 2023, it launched its web-app building product in late November of that year. By May, CEO Anton Osika announced via Twitter that Lovable achieved an impressive $50 million in annual recurring revenue (ARR) within just six months. Similar to competitors such as Replit and Bolt, Lovable enables users to create entire web applications from mere text prompts. This includes crafting user interfaces using popular tools like React and integrating databases like Supabase. Users have noted the affordability of the platform, with basic plans starting at $25 per month for 250 credits. One Reddit user shared their experience of developing an application with over 29,000 lines of code and numerous functions for just $250. In a recent announcement, Lovable revealed the beta version of an AI agent designed to automate various tasks, including code editing and debugging, by analyzing project files. The pricing model for this service will be based on usage; the more tasks the agent performs, the more credits users will be charged. While this could potentially lead to higher costs for users who rely heavily on the agent for app management, it reflects a trend that many AI startups are adopting, as they often incur variable fees to AI model providers like OpenAI or Anthropic. This business strategy is likely to please investors, although requests for comments from Accel, 20VC, and Lovable went unanswered.