Lovable is said to be in discussions to secure $300 million at a valuation of $13.2 billion.

      **TL;DR** Swedish vibe-coding startup Lovable is reportedly negotiating to secure $300 million at a valuation of $13.2 billion, as stated by Sifted. This represents roughly a twofold increase from its $6.6 billion Series B valuation in December. The company has exceeded $500 million in annualized revenue with a workforce of about 146 employees. Discussions regarding the funding round are ongoing, and the high valuation is influenced by a surge in AI investments despite unresolved security issues in vibe-coding.

      According to a report by Sifted, Lovable, the Swedish vibe-coding startup, is in discussions to raise $300 million at a $13.2 billion post-money valuation, as confirmed by two individuals familiar with the negotiations. This figure would effectively double its $6.6 billion valuation from its $330 million Series B fundraising that occurred in December.

      The funding round is still being negotiated rather than finalized, meaning the figures may change, and Lovable has chosen not to comment on the matter. Sifted's Freya Pratty and Maya Dharampal-Hornby reported on these negotiations, which follow earlier indicators in June suggesting a potential raise of around $12 billion.

      The impressive growth behind this valuation is evident, as Lovable has surpassed $500 million in annualized revenue with only 146 employees, and it currently sees about one million new projects initiated weekly.

      Founded in 2023 by Anton Osika and Fabian Hedin, the company allows non-technical users to create applications and websites using simple text prompts, rapidly becoming a leading name in European technology.

      Its growth trajectory is remarkable, making it one of the fastest-growing software startups recorded, achieving $100 million in annual recurring revenue within just eight months of its launch, before doubling that figure shortly thereafter.

      Lovable’s rapid progress serves as a beacon for a continent often criticized for its insufficient support for startups. CEO Anton Osika has indicated that Europe’s AI firms face a lack of confidence rather than a lack of talent. A $13.2 billion valuation would strongly counter that negativity. Osika appeared alongside entrepreneur Mark Cuban at the Raise summit in Paris this morning, providing him with a timely opportunity to speak as discussions about the funding proceeded.

      This potential funding round is likely to heighten competition in the vibe-coding sector, with competitors like Base44 developing their own models in response.

      The promise of this category lies in simplifying software creation to conversational formats. This appeal has attracted founders, designers, and sales professionals who have no coding background, as well as a flood of investor interest seeking the next major platform innovation.

      **Caveats Behind the Hype**

      Despite its rapid growth, Lovable faces challenges. The company recently dealt with a security incident that left some projects vulnerable, illustrating the risks associated with swiftly developed applications. Additionally, the valuation is fueled by a current AI investment boom that some believe may not be sustainable. The astounding growth within six months is precisely the kind of situation that can lead to bubble concerns when market sentiment shifts.

      At present, the growth momentum is undeniable, and a revenue run-rate of $500 million lends more solidity to this valuation than many others. Whether the deal will close at $13.2 billion and maintain that value remains to be seen in the coming months.