Swedish AI Startup Lovable Becomes Europe’s Newest Unicorn

In a remarkable ascent, Swedish AI startup Lovable has achieved unicorn status just eight months after its inception. The company recently closed a $200 million Series A funding round, led by Accel, valuing the startup at $1.8 billion. Lovable is distinguished by its innovative use of large language models to enable users to create websites and apps using natural language commands.

Since its launch, Lovable has attracted over 2.3 million active users. While the majority enjoy the platform’s free offerings, the startup has also secured a substantial paying user base, with over 180,000 subscribers contributing to a significant annual recurring revenue stream.

The Series A round saw participation from notable investors such as 20VC, byFounders, Creandum, Hummingbird, and Visionaries Club. Earlier this year, Creandum led a funding round that saw Lovable reach an annual recurring revenue of $17 million with 30,000 paying customers.

Despite its rapid growth, Lovable operates with a lean team of 45 full-time employees. The startup’s success has caught the attention of high-profile angel investors, including executives from Klarna, Remote, Slack, and HubSpot.

Lovable’s appeal lies primarily with non-technical users who utilize the platform to create prototypes for collaboration with developers. However, the company envisions expanding its offerings to support the creation of production-grade applications for businesses. CEO Anton Osika highlighted the platform’s potential, citing successful projects such as a Brazilian edtech app that grossed $3 million within 48 hours.

As Lovable continues to expand, it has already begun acquiring enterprise customers, including notable names like Klarna and HubSpot, paving the way for future growth and innovation in the AI-driven app development space.