Vibe Coding Startup Lovable Negotiates $6 Billion Valuation Deal

Lovable, a Stockholm-based startup specializing in ‘vibe coding,’ is currently negotiating a significant funding round that could value the company at approximately $6 billion. This valuation marks a substantial increase from its previous worth of $1.8 billion in July, following a $200 million Series A funding led by Accel.

Understanding Vibe Coding

Vibe coding enables programmers, including those without extensive experience, to develop applications or websites with the assistance of AI models. These models suggest code snippets, making the coding process more accessible and efficient.

Remarkable Growth in Revenue and Users

Since its launch in November, Lovable has experienced remarkable growth. The company became the fastest-growing software startup in history by achieving $100 million in annualized subscription revenue within just eight months. Comparatively, its competitors, such as Wiz and Deel, reached similar benchmarks in 18 months and two years, respectively.

As of now, Lovable reports 8 million active users, a significant increase from 2.3 million in July. This surge reflects the increasing popularity of vibe coding solutions.

Competitive Landscape

• Cursor, another coding tool focused on professional programmers, recently raised $2.3 billion at a $30 billion valuation.
• Cursor’s annual revenue has surpassed $1 billion, establishing it as the largest player in the vibe coding sector in terms of revenue and valuation.
• Other notable competitors include Replit, Bolt, and Cognition, all leveraging AI technology for code generation.

Challenges from Major AI Companies

As the vibe coding sector grows, competition is intensifying. Major AI companies, including Anthropic and OpenAI, have begun to launch their own coding tools, challenging startups like Lovable. Google also acquired the founders of another tool, Windsurf, illustrating the stakes in this rapidly evolving market.

As the funding negotiations continue, the landscape of vibe coding remains dynamic, with Lovable positioned as a key player in this innovative space.