Swedish vibe-coding startup Lovable is reportedly in talks to raise $300 million at a $13.2 billion valuation, exactly double its December figure and just six months later. The raise rides $500 million in annualized revenue built by only 146 staff. But nothing is signed, and unresolved security incidents shadow the story.

Key Takeaways

• Lovable is reportedly in talks to raise $300M at $13.2B
• That’s double its $6.6B December valuation, six months on
• Menlo Ventures is expected to lead the round
• It hit $500M annualized revenue with just 146 staff
• The talks are unconfirmed, and security concerns linger

What the Report Says

The scoop came from Sifted. It reported that Lovable is in talks to raise $300 million at a valuation of $13.2 billion, exactly double the $6.6 billion valuation the company reached last December.

There’s a clear frontrunner to lead it. Menlo Ventures, a firm that announced its latest $3 billion fund last month, is expected to lead the round, according to the report, deepening a relationship that dates to Lovable’s earlier raises.

The sourcing calls for caution. Sifted cited two people familiar with the deal, described the $13.2 billion as a post-money figure, and stressed the round is still under discussion rather than done, so the numbers could shift. Lovable declined to comment.

The talks didn’t come out of nowhere. They follow earlier signals in June that a raise near $12 billion was in the works, so the direction has been building for weeks.

The Numbers Behind the Valuation

You don’t usually see a valuation double this fast without a real step change underneath, and Lovable has one. The company crossed $500 million in annualized revenue, up from the $400 million it disclosed in February.

The efficiency is the eye-catching part. Lovable reached that half-billion revenue mark with just 146 staff, a revenue-per-employee ratio that helps explain why investors keep revising the price tag upward.

Usage is scaling in step. The company now sees roughly a million new projects starting each week, and it hit $100 million in annual recurring revenue within eight months of launch before doubling that months later.

The customer base spans both ends. Lovable’s users include individual founders, designers, and salespeople building websites and storefronts, and it also sells its tool to large enterprises including Workday, Asana, and Nvidia.

A Startlingly Steep Trajectory

The valuation ladder is almost vertical. Lovable priced at $1.8 billion in July 2025, jumped to $6.6 billion in December, and if this round closes, more than $13 billion by the middle of 2026.

Each rung has been backed by heavy hitters. The December Series B was led by CapitalG and Menlo Ventures’ Anthology fund, with Nvidia’s NVentures, Salesforce Ventures, and Databricks Ventures among the backers.

The pace is historic. Lovable has become one of the fastest-growing software startups on record, and a $13.2 billion tag would cement its place atop European tech.

Founded in 2023 by Anton Osika and Fabian Hedin, the Stockholm company lets non-technical users build apps and sites from plain-text prompts. Osika shared a stage with Mark Cuban at the Raise summit in Paris the morning the talks surfaced, a timely spotlight.

The Security Shadow

Rapid growth has come with growing pains, and the sharpest is security. In April, a researcher disclosed a broken object-level authorization flaw that let anyone with a free Lovable account pull another user’s data.

The response drew criticism. Reports note the issue was left unpatched for 48 days, a lag that stands out for a company selling to enterprise clients with real data at stake.

It isn’t an isolated worry. A separate episode left projects exposed, allowing access to the source code and chat history of other projects, a reminder that speed-built apps can ship real vulnerabilities.

That sets up the core bet. If $13.2 billion holds, investors are wagering that revenue growth matters more to enterprise buyers than a slow security response, a defensible bet only if Lovable fixes the pattern behind these incidents.

The Vibe-Coding Gold Rush

Lovable isn’t raising in a vacuum. Vibe coding, building software by describing what you want instead of writing it, has become the most popular and lucrative use case for AI, and the funding reflects it.

The rivals are well-capitalized. Cursor, built by Anysphere, closed a $2.3 billion Series D at a $29.3 billion valuation in November and was reportedly back in talks for another $2 billion at roughly $50 billion. Replit was valued at $9 billion in March, and Factory raised $150 million at $1.5 billion in April.

The competition is also getting more technical. Rivals like Base44 are building their own models to compete, raising the stakes in a category that has drawn a torrent of investor cash chasing the next platform shift.

Lovable’s niche is the non-coder. While Cursor dominates among professional developers, Lovable primarily serves people who never wrote code, and its numbers suggest it’s holding its ground rather than losing share to better-funded rivals.

Why It Matters

The deal, if it closes, is a loud rebuttal to AI-bubble skeptics. A valuation compounding faster than almost anything else in software signals that investors still see vibe coding as one of the clearest paths to monetizing generative AI.

But dazzling speed cuts both ways. Doubling in six months is exactly the kind of move that fuels bubble talk when sentiment turns, and Lovable’s valuation now rides an AI-funding wave that not everyone believes is sustainable.

The bigger shift is who gets to build software. By collapsing app creation into plain conversation, platforms like Lovable are pulling founders, designers, and salespeople into development for the first time. Whether that demand, and the revenue behind it, proves durable is the question the next few months will start to answer.

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