AI app-building platform Lovable is reportedly in advanced talks to raise $300 million in a new funding round that would value the company at $13.2 billion — roughly double its previous valuation, according to a report from Sifted.
The round is expected to be led by Menlo Ventures, continuing a wave of high-conviction bets on so-called "vibe coding" tools that let users build software through natural language prompts.
Rapid Ascent in the Vibe-Coding Race
Lovable has emerged as one of the breakout stars of the AI development tools space. The Swedish startup lets non-technical users generate full-stack web applications from text descriptions, dramatically lowering the barrier to software creation.
The company's trajectory has been steep:
- Launched publicly in early 2024
- Reached $10 million ARR within weeks of launch
- Previously valued at roughly $6.6 billion
- Now targeting a $13.2 billion valuation with this new raise
Investor Appetite Remains Strong
The reported deal would be one of the largest rounds in the vibe-coding category, which also includes competitors like Bolt, Replit, and Cursor. Investors appear increasingly willing to place large bets on platforms that sit at the intersection of AI and software development productivity.
If confirmed, the round would underscore how quickly capital is concentrating around a handful of AI-native development platforms.
Menlo Ventures has been an active player in AI infrastructure and tooling — the firm also led a major investment in Anthropic — making Lovable a logical addition to its portfolio.
What's Driving the Valuation?
Lovable's appeal lies in its simplicity and speed. Users can go from idea to deployed web app in minutes, without writing a single line of code. That proposition has resonated strongly with founders, marketers, and product teams looking to prototype quickly.
The broader market for AI-assisted development tools is expanding fast, with enterprises and individual developers alike accelerating adoption. A successful close at $13.2 billion would cement Lovable as one of Europe's most valuable AI startups — and one of the highest-valued vibe-coding platforms globally.
