Lovable Becomes Europe's Latest Unicorn with $200M Series A at $1.8B Valuation
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Swedish AI startup Lovable has become Europe's latest unicorn after closing a $200 million Series A funding round led by Accel, bringing the company's valuation to $1.8 billion. The milestone comes just eight months after the Stockholm-based company's public launch, making it one of the fastest-growing AI startups in European history.
The Funding Round
The Series A round, announced July 17, 2025, represents Sweden's largest-ever Series A funding round. Accel led the investment with participation from existing investors including 20VC, byFounders, Creandum, Hummingbird, and Visionaries Club. The round also attracted high-profile angel investors including Klarna CEO Sebastian Siemiatkowski, Remote CEO Job van der Voort, Slack co-founder Stewart Butterfield, and HubSpot co-founder Dharmesh Shah.
This funding follows Lovable's $15 million pre-Series A round in February 2025, led by Creandum, demonstrating the rapid acceleration in investor interest.
The Founders
Lovable was co-founded by Anton Osika and Fabian Hedin, two Swedish entrepreneurs with deep technical backgrounds. Osika, who began coding at age 12, previously served as the first technical hire at Sana Labs and co-founded Depict.ai, a Y Combinator startup that raised $20 million. He also developed award-winning AI algorithms and co-founded the Stockholm AI community.
Hedin has been building ventures since age 10, selling a prop-tech startup while in high school. His experience includes developing Stephen Hawking's computer interface and working with ex-SpaceX engineers on wheelchair technology.
The Platform and "Vibe Coding"
Lovable enables users to build full-stack web applications using natural language prompts, a development approach the company calls "vibe coding." Users describe their app idea in plain English, and the AI generates working code, including backend functionality, frontend design, and native integrations.
The platform supports various input types, including text descriptions, images, flowcharts, and Figma files. Users can create everything from QR code generators to invoice builders to arcade-style games with simple prompts.
Explosive Growth Metrics
Lovable's growth trajectory has been remarkable since its November 2024 launch:
- Over 2.3 million active users
- More than 180,000 paying subscribers
- $75 million in annual recurring revenue within seven months
- Over 10 million projects created on the platform
- Approximately 25,000 new apps launched daily
The company achieved $4 million ARR in its first four weeks and reached $50 million ARR by May 2025, establishing it as Europe's fastest-growing startup ever.
Business Model and Enterprise Adoption
While most users access Lovable for free, the platform has built a substantial paid subscriber base. Enterprise customers include major companies like Klarna and HubSpot, indicating strong adoption across both individual and corporate users.
CEO Anton Osika highlighted one case study where a Brazilian edtech company built an app using Lovable that generated $3 million in revenue within 48 hours, demonstrating the platform's potential for serious commercial applications.
Target Market and Vision
Lovable targets the 99% of people who have software ideas but lack coding skills. As Osika explained: "Today, there are 47 million developers worldwide. Lovable is going to produce 1 billion potential builders."
The founders identified a critical gap in a $4.7 trillion software industry growing at 20% annually, where demand for development far outpaces available technical talent. Most users are non-technical individuals who create prototypes that are later developed with engineering support.
Technology and Agent Mode
Lovable recently introduced Agent Mode in beta, allowing the AI to autonomously think, plan, and execute complex development tasks. Users can upload specification documents and let the system build projects independently, representing a significant advancement in AI-powered development.
The team discovered breakthrough capabilities in AI "unsticking itself"—allowing the system to continuously improve and fix its own bugs without human intervention.
Use of Funds
The company plans to use the funding to expand its engineering team, enhance the platform's capabilities for more complex applications, and scale infrastructure to handle growing demand. Lovable currently operates with a lean team of 45 employees, remarkable given its scale and growth rate.
Future Outlook
With $200 million in fresh capital, Lovable is positioned to accelerate its mission of making software development accessible to anyone with an idea. The company's rapid progression from startup to unicorn status in less than a year underscores the massive market opportunity for AI-powered development platforms.
As CEO Osika stated, their goal is to create "the last piece of software"—a platform that builds other software, potentially transforming how the next generation approaches digital product creation.
