Key Takeaways
- • The EU-backed €5bn Scaleup Europe Fund, managed by EQT, invested $400m in Lovable's Series C round, valuing the Swedish AI coding startup at $13.3bn—more than double its $6.6bn valuation from December 2025.
- • Menlo Ventures led the Series C, with participation from existing investors and new backers including Tencent from Asia and investors from Latin America, reflecting global demand for AI software development tools.
- • Lovable's "vibe coding" platform—which enables users to build websites, applications, and software through natural-language instructions rather than traditional programming—has generated over 60 million projects since launch and 900 million monthly visits to user-created applications.
- • The company is tracking toward approximately $600m in annual recurring revenue by end of August 2026, demonstrating rapid commercialization of generative AI capabilities in software development.
- • The investment positions EQT's Scaleup Europe Fund to gain exposure to one of Europe's fastest-growing AI businesses while supporting the EU's strategic objective of building globally competitive technology companies within the region.
Summary
The European Union-backed Scaleup Europe Fund, a €5bn vehicle managed by EQT, has committed $400m to Swedish AI coding company Lovable's Series C financing round, valuing the rapidly scaling startup at $13.3bn. The valuation represents more than a doubling of Lovable's $6.6bn valuation achieved in December 2025, exemplifying the aggressive repricing of leading artificial intelligence companies across investor portfolios.
Menlo Ventures led the Series C round, which attracted participation from a diverse investor base spanning existing venture backers alongside new institutional capital from Asia and Latin America, notably including Tencent. This geographic diversification of investors underscores the global market appetite for AI-assisted software development solutions. EQT's participation through its EU-focused fund aligns with the vehicle's mandate to identify and support European scaleups capable of achieving global technological scale.
Lovable, headquartered in Stockholm, operates within the commercially emergent "vibe coding" sector, which leverages generative AI to democratize software development. The platform enables users to construct websites, applications, and software using natural-language instructions rather than conventional programming syntax. Since its inception, the company has facilitated the creation of more than 60 million projects, with applications built on its platform generating over 900 million visits monthly. The company is on track to reach approximately $600m in annual recurring revenue by the end of August 2026, signaling strong unit economics and market adoption.
The funding round arrives amid intensifying competitive dynamics in AI-assisted software development. For EQT's Scaleup Europe Fund, the investment delivers strategic exposure to one of Europe's fastest-growing AI businesses while advancing the EU's broader objective of retaining and scaling technology companies at a globally competitive level. The deal reflects both investor confidence in the commercial viability of AI coding tools and the substantial valuations being assigned to market leaders in this emerging category.
Menlo Ventures led the Series C round, which attracted participation from a diverse investor base spanning existing venture backers alongside new institutional capital from Asia and Latin America, notably including Tencent. This geographic diversification of investors underscores the global market appetite for AI-assisted software development solutions. EQT's participation through its EU-focused fund aligns with the vehicle's mandate to identify and support European scaleups capable of achieving global technological scale.
Lovable, headquartered in Stockholm, operates within the commercially emergent "vibe coding" sector, which leverages generative AI to democratize software development. The platform enables users to construct websites, applications, and software using natural-language instructions rather than conventional programming syntax. Since its inception, the company has facilitated the creation of more than 60 million projects, with applications built on its platform generating over 900 million visits monthly. The company is on track to reach approximately $600m in annual recurring revenue by the end of August 2026, signaling strong unit economics and market adoption.
The funding round arrives amid intensifying competitive dynamics in AI-assisted software development. For EQT's Scaleup Europe Fund, the investment delivers strategic exposure to one of Europe's fastest-growing AI businesses while advancing the EU's broader objective of retaining and scaling technology companies at a globally competitive level. The deal reflects both investor confidence in the commercial viability of AI coding tools and the substantial valuations being assigned to market leaders in this emerging category.
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