Lovable in Talks to Double Valuation to $13.2B in New Round
Lovable, the AI-powered app builder, is reportedly in talks to raise $300 million in a new round led by Menlo Ventures that would double its valuation to $13.2 billion. The deal has not been confirmed by the company.
Original sourceLovable, the Swedish startup that lets users build web applications through conversational prompts, is in advanced talks to raise approximately $300 million in a new funding round that would value the company at $13.2 billion, according to a report from Sifted. The round is said to be led by Menlo Ventures. If completed, it would roughly double Lovable's last reported valuation and rank it among the most highly valued AI developer tools companies in Europe.
Lovable competes in a crowded category of AI-native app builders alongside Bolt, Replit, and Cursor, all of which have also seen aggressive funding in the past 18 months. The space is premised on a simple thesis: that natural language will replace traditional IDE workflows for a meaningful portion of software creation, particularly among non-engineers and early-stage builders.
The valuation trajectory is striking. Lovable reached a reported $6.5 billion valuation earlier in 2025 after growing to over $50 million in annualized revenue at exceptional speed. A $13.2 billion figure implies investors are pricing in sustained category leadership, not just current traction. The competitive dynamics of this market — with well-capitalized players at every tier — make that a substantial bet.
Neither Lovable nor Menlo Ventures has publicly confirmed the terms of any deal. The report is based on sources familiar with the negotiations, and the round could still change in structure or close at different terms.
Panel Takes
The Founder
Business & Market
“A $13.2B valuation on what was reportedly ~$50M ARR earlier this year means investors are paying an enormous multiple on current revenue and betting Lovable becomes the default creation layer — not just for prototyping but for production apps. The moat question is real: Bolt, Replit, and even Cursor are all chasing the same workflow, and the underlying model providers could compress the core value prop at any point. What I'd want to see before calling this a sound business is evidence that users are staying, not just starting — retention and expansion revenue matter far more here than the headline growth number.”
The Skeptic
Reality Check
“The $13.2B number is being driven by investor FOMO in the AI app-builder category, not by a clear answer to the question of what happens when Anthropic or OpenAI ship native app-generation interfaces with better model access and no margin layer. Lovable's real competition isn't Bolt — it's the API providers themselves, and that ceiling is getting lower every quarter. The scenario that kills this in 12 months: OpenAI ships a first-party 'build an app' product inside ChatGPT that's good enough for 80% of Lovable's use cases, and the premium for Lovable's UX doesn't justify a separate subscription.”
The Futurist
Big Picture
“The thesis Lovable is betting on is falsifiable and specific: that by 2027, the majority of new SaaS prototypes and internal tools will be generated, not coded from scratch, and that whoever owns the creation surface owns the deployment and hosting relationship downstream. That's a platform bet, not a tool bet, and the $13.2B valuation only makes sense if the second-order effect — capturing recurring infrastructure spend from apps that graduate out of the builder — actually materializes. The trend line is real and Lovable is on-time to it, but the dependency is that they can build stickiness into the post-generation workflow before a better-capitalized player commoditizes the generation step itself.”
The PM
Product Strategy
“The job-to-be-done for Lovable is unambiguous — get a working web app in front of someone without requiring them to write code — and they've clearly nailed the early part of that job well enough to generate serious revenue. The product risk at this valuation is the completeness gap: apps built in Lovable still hit walls when users need custom backend logic, third-party integrations that weren't pre-wired, or production-grade scalability, which means a meaningful percentage of users eventually outgrow the tool rather than expanding within it. Expansion revenue is what justifies a $13B multiple, and I'd want to see the data on how many users hit that ceiling versus grow into higher tiers.”