👉 Background: Lovable is a Swedish AI startup that lets users build websites and apps using natural language. In other words, you can tell it in plain English, French or Swedish the kind of app or website you want... and boom, it’s done. The website is developed, the colour palette chosen, even the logo is designed.

👉 What happened: Lovable, which only launched in November 2024 already has 2.3 million active users and 180,000 paying subscribers. Now, Lovable just raised a whopping $200 million USD at a $1.8 billion valuation USD.

👉 What else: In just 8 months, Lovable has already generated $75 million USD in annual recurring revenue. Not bad for a company with just 45 employees. And this is all part of an up and coming group of “vibe-coding” AI companies.

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‍What's the key learning?

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‍💡Vibe coding is the idea that you don’t need to know how to code… you just need to describe your idea clearly in natural language. The AI handles the rest.

💡This shift means way more people can test ideas, build products, and launch apps. And that means AI is shifting the balance of power from engineers to ideas people. In other words, the builders, the creatives, the executors.

💡And clearly, democratising software development is very big business. In fact, just last month, AI coding assistant Cursor raised $500 million USD on a near $10 billion USD valuation. The next wave of AI companies are all about making software more accessible...and Lovable is clearly cashing in.