The Swedish AI startup Lovable has completed a Series C funding round of $400 million, as the company announced on its own blog. The new valuation of $13.3 billion is double that of December 2025. The round is led by Menlo Ventures together with the Scaleup Europe Fund, an EU-funded investment vehicle.
EU fund backs European AI provider
The Scaleup Europe Fund manages a volume of around five billion euros and is run by the investment house EQT on behalf of the European Innovation Council. The fund initially co-financed the space company ICEYE in early August before now investing in Lovable. The program’s goal is to stop high-growth European companies from relocating their headquarters to the USA or going public there. EQT partner Victor Englesson pointed, according to The Next Web, to the British AI company Nscale, which, despite its European roots, is pursuing a US listing – a pattern the fund wants to prevent with Lovable. Co-founder Anton Osika said Europe has “a confidence problem rather than a talent problem.” The company, headquartered in Stockholm, plans to keep it there despite international expansion. The European Innovation Council (EIC) had tasked EQT with running the fund in May 2026; the Lovable stake ranks among the fund’s first publicly disclosed investments. For the EU, the deal is also a political signal: unlike previous European AI success stories, this time the capital is meant to come from Europe itself from the outset, rather than ceding the field to US investors.
User numbers and revenue grow rapidly
With Lovable’s vibe coding – building software solely through natural-language text prompts, without traditional hand-written code – more than 60 million projects have been created since its November 2024 launch. The applications built with it draw a combined 900 million-plus visits a month. Annual revenue climbed from $200 million in November 2025 to around $500 million in June and is expected to reach $600 million by the end of August. Nearly two-thirds of Fortune 500 employees reportedly already use the software – independently unverified. Corporate customers include Deutsche Telekom, Adidas, and Nvidia. Since its Series B in December 2025, Lovable has also added payment features, AI search tools, and integrations with Google Workspace, Microsoft 365, and Salesforce, and has earned an AIUC-1 security certification. The company plans to grow its team to around 450 employees by the end of 2026 and expand into London, Boston, San Francisco, and New York.
Competition for AI coding tools intensifies
Competition for AI-powered coding tools is heating up as well. Rival Cognition is currently negotiating a $40 billion valuation for its coding assistant Devin. Aerospace company SpaceX also acquired Cursor-maker Anysphere for $60 billion in an all-stock deal in June, as Tech Funding News reported. Anthropic, OpenAI, Google, and Replit are building competing tools for automated coding as well. Osika also concedes a weak spot: what the generated code actually does once it’s live is, according to Osika, the bigger risk than how it was written. To avoid depending on a single provider, Lovable says it deliberately relies on multiple AI models from different makers rather than one base model. Cursor now belongs to SpaceX subsidiary xAI, marking its first entry into the market for professional developer tools. Industry observers are also debating whether the growing number of AI-generated apps could eventually pressure established software vendors – a thesis that remains unproven so far.
What matters now is whether the Scaleup Europe Fund can actually deliver on its goal: keeping high-growth European tech companies from relocating headquarters to the USA or listing there, as the British company Nscale did before. Lovable itself is holding onto its Stockholm headquarters for now, while aiming to grow its team to around 450 employees by year’s end.
