Lovable has raised $400 million.

Lovable has raised $400 million in a new funding round at a valuation of $13.3 billion, putting the Swedish AI startup among Europe's most valuable technology companies.

The company is part of a growing group of AI startups trying to change how software is built. Instead of writing code line by line, users can describe what they want in normal language and let AI build the application.

That approach is often called vibe coding.

What Does Lovable Actually Do?

Lovable lets people create websites, applications and other software by describing what they want in natural language.

A user can explain an idea, ask the AI to build it and then continue making changes through a conversation.

The idea is simple: reduce the gap between having an idea and turning it into working software.

That makes the platform useful not only for developers, but also for founders, designers and businesses that may not have a large technical team.

Why Is Lovable Worth $13.3 Billion?

The latest funding round was led by Menlo Ventures and the Scaleup Europe Fund managed by EQT, with participation from investors including Tencent, Balderton Capital and World Innovation Lab.

The new round more than doubled Lovable's valuation from $6.6 billion in December 2025.

The company has also grown quickly on the revenue side.

Lovable reached a reported $500 million annualised revenue run rate in June and is targeting around $600 million by the end of August.

For investors, that growth gives the valuation a stronger business story than simply betting on an interesting AI product.

Vibe Coding Is Becoming a Bigger Business

The idea behind vibe coding is not completely new, but the speed at which these tools are growing has changed the conversation around software development.

Earlier, building a software product usually meant having developers, designers and other technical resources.

Now, a person can start with an idea and use AI to create a working version much faster.

That does not mean developers are no longer needed.

For serious software, companies still need people who understand architecture, security, testing, databases and long-term maintenance.

But AI can reduce the amount of time needed to move from an idea to a first working product.

Lovable Is Going After Businesses Too

Lovable is also moving beyond individual users and small projects.

Companies such as Nvidia, Adidas, Hearst and Zendesk are among the businesses reported to be using the platform.

The company plans to use its new funding to expand its team, strengthen its presence in the United States and Latin America, and improve security and reliability.

That shift matters.

Building a simple website with AI is one thing.

Convincing a large company to use AI-generated software in its business is a much bigger challenge.

The Real Question: Can AI-Built Software Become a Business?

The biggest test for Lovable is no longer whether people want to build software with AI.

There is already strong demand.

The bigger question is whether these tools can become part of how businesses actually build, launch and manage software.

Security will be important.

Reliability will be important.

Collaboration will be important.

And companies will want to know what happens when an AI-built application becomes critical to their business.

Lovable has been adding features around payments, integrations, security and discoverability as it tries to move from simply helping people build applications to helping them run those applications as businesses.

What This Means for Developers

Vibe coding is unlikely to simply remove the need for software developers.

Instead, the role may change.

Developers could spend less time writing routine code and more time making decisions about architecture, security, performance and product design.

At the same time, people who previously could not code may be able to build useful software on their own.

That could expand the number of people who can experiment with software ideas.

Aurthor Opinion

Lovable's $400 million funding round is not interesting only because of its $13.3 billion valuation.

The bigger story is that investors are putting serious money behind the idea that AI can change who gets to build software.

If Lovable and similar companies can make AI-built software secure, reliable and useful for real businesses, vibe coding could become much more than a trend.

The real test is no longer whether AI can write code. It is whether AI can help people build businesses with that code.