European AI coding startup Lovable has confirmed a new $400 million Series C round at a $13.3 billion valuation, cementing its position as one of the region’s most valuable software companies. The round, announced Wednesday, was led by Menlo Ventures and the Scaleup Europe Fund, with more than a dozen other investors participating.
The new funding comes just eight months after Lovable raised $330 million at a $6.6 billion valuation, a round also led by Menlo Ventures with CapitalG as co-lead. The company says it reached $500 million in annualized run rate revenue in June, a figure that underscores the explosive demand for AI-assisted software development tools.
Also read: Hinton, Fei-Fei Li, and Andrew Ng Clash Over Open vs. Closed AI at Ai4 2026
Rapid growth in AI coding
Lovable’s platform, which lets users build web applications by describing what they want in natural language, has become a flagship example of the “vibe coding” trend. The company now says it hosts 60 million projects and attracts 900 million monthly visitors, numbers that have grown dramatically over the past year.
As the user base has expanded, so has the company’s technical infrastructure. Lovable now operates its own in-house trained AI model alongside offerings from major frontier model providers, giving users flexibility in how they build. In June, the company signed a multiyear deal with Google Cloud, increasing its usage of the cloud provider’s services fivefold.
Also read: OpenAI COO Brad Lightcap Departs to 'Start Something New' Amid IPO Preparations
The startup has also begun investing in other European companies. It backed Danish startup Atech, which is developing vibe-coding software designed to create tech hardware, signaling Lovable’s ambitions beyond pure software development.
What the round means for the market
The $13.3 billion valuation places Lovable among the most valuable private AI companies in Europe, a region that has historically trailed the United States in AI investment. The company’s rapid revenue growth — from roughly $100 million annualized run rate in late 2025 to $500 million by mid-2026 — suggests that demand for AI coding tools is not slowing down.
Industry observers note that Lovable’s growth mirrors the trajectory of other AI infrastructure companies, but with a consumer-like adoption curve. The platform’s ease of use has attracted non-developers, expanding the total addressable market beyond professional programmers.
The participation of Regent, the investment firm that also owns TechCrunch, in the Series C adds a notable crossover between the startup’s investor base and the media outlet covering it. This is not unusual in the venture capital world, but it highlights the interconnected nature of the tech and media industries.
What to watch next
With fresh capital in hand, Lovable is expected to accelerate its expansion into enterprise markets and continue building out its proprietary AI models. The company’s partnership with Google Cloud suggests it is investing heavily in infrastructure to support its growing user base.
Competition in the AI coding space remains intense, with well-funded rivals like GitHub Copilot, Replit, and a host of startups all vying for developers’ attention. Lovable’s differentiation lies in its focus on non-technical users and its European base, which gives it a distinct cultural and regulatory perspective.
Investors will be watching whether Lovable can maintain its growth trajectory and convert its massive free user base into paying customers. The company’s move into hardware design software through Atech could also open new markets, though that remains an early-stage bet.
This article is for informational purposes only and does not constitute financial advice. The startup funding market is volatile and valuations can change rapidly. Readers should conduct their own research before making any investment decisions.
Be the first to comment