Exclusive: Lovable in talks to raise $300m at $13.2bn valuation

2026-07-08 · Source: Sifted · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Entrepreneurship & Start-ups, Emerging Technologies & Innovation · Depth: Fundamental Awareness, quick

Summary

Swedish vibe-coding startup Lovable is reportedly in discussions to secure \$300 million in new funding, which would value the company at \$13.2 billion post-money. US-based Menlo Ventures is expected to lead this investment round. Lovable, co-founded by CEO Anton Osika, previously raised \$1.7 billion across two rounds, including a \$567 million Series C and a \$496 million Series D, with notable investors like Atomico, Lightspeed Venture Partners, and Sequoia Capital. The company generated \$192 million in annual recurring revenue (ARR) last year, experiencing a 60% growth in revenue in 2025. This fundraising effort occurs amidst a broader market trend where investors are prioritizing profitability over rapid growth, positioning Lovable as a potential competitor to established AI players like OpenAI in the "vibe-coding" sector.

Key takeaway

For AI startup founders seeking new capital, Lovable's \$300 million raise at a \$13.2 billion valuation underscores a critical market shift. Investors, exemplified by Menlo Ventures leading this round, are now intensely focused on your path to profitability and demonstrated revenue growth, not just potential. You should prepare to showcase strong ARR and clear financial sustainability to attract significant investment in the current "quiet period."

Key insights

Lovable, a "vibe-coding" startup, is raising $300M at a \$13.2B valuation, reflecting investor focus on profitability in AI.

Principles

• Investors are scrutinizing profitability and growth metrics.
• AI startups are facing a "quiet period" for fundraising.
• "Vibe-coding" aims for emotional intelligence in AI.

In practice

• Lovable's "vibe-coding" targets human-like AI interactions.
• AI startups must demonstrate clear path to profitability.
• Secure lead investors like Menlo Ventures for large rounds.

Topics

• Lovable
• Vibe-coding
• Startup Funding
• AI Valuation
• Venture Capital
• Annual Recurring Revenue

Best for: Investor, Entrepreneur, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.