EQT-managed EU fund invests in $400m Lovable fundraising round at $13.3bn valuation
The European Union-backed €5bn Scaleup Europe Fund, managed by EQT, has invested in a $400m Series C fundraising round by Swedish AI coding company Lovable, valuing the fast-growing ‘vibe coding’ startup at $13.3bn, according to a report by Bloomberg.
The round was led by Menlo Ventures, while a number of existing venture investors also participated alongside new backers from Asia and Latin America, including Tencent.
The funding more than doubles Lovable’s valuation from the $6.6bn level it reached in December, underlining the extraordinary pace at which investors are repricing leading AI companies.
For EQT, the deal provides the Scaleup Europe Fund with exposure to one of Europe’s fastest-growing AI businesses. The €5bn fund is intended to support European scaleups and strengthen the region’s ability to retain and build technology companies at global scale.
Lovable, based in Stockholm, develops AI tools that allow users to build websites, applications and other software through natural-language instructions rather than conventional programming. The company is part of the rapidly expanding ‘vibe coding’ sector, which has become one of the more commercially successful applications of generative AI.
The startup said users have created more than 60 million projects since its launch, while applications built on the platform generate more than 900 million visits a month. Its annual recurring revenue has also risen sharply, with the company tracking towards approximately $600 by mthe end of August.
The investment comes as competition in AI-assisted software development intensifies. Anthropic, OpenAI and Google are all developing coding tools, while SpaceX agreed in June to acquire rival Cursor for $60bn. AI coding company Cognition is also reportedly seeking fresh capital at a valuation of around $40bn.
Lovable has increasingly targeted enterprise customers, with companies including Adidas, Deutsche Telekom and Nvidia using its platform. The company plans to deploy the new capital towards product development, infrastructure and expanding its workforce.
