Lovable Hits $200M ARR, CEO Credits European Roots for Success
▼ Summary
– Lovable doubled its annual recurring revenue to $200 million in just four months after reaching $100 million ARR in July.
– The company’s CEO credits staying in Europe rather than moving to Silicon Valley as key to its success, proving global AI companies can be built there.
– Lovable benefited from Europe’s less high-paced AI market and attracted talent from Silicon Valley companies like Notion and Gusto to work in Stockholm.
– The company’s open-source community has actively contributed to improving its technology through ongoing engagement and debates.
– Lovable has raised over $225 million in venture funding, including a $200 million Series A round in July that valued the company at $1.8 billion.
The Swedish AI coding platform Lovable has reached an impressive $200 million in annual recurring revenue, doubling its ARR in just four months. CEO Anton Osika announced this significant achievement during his presentation at the 2025 Slush technology conference in Helsinki. This rapid growth follows the company’s earlier milestone of hitting $100 million ARR in July, marking an extraordinary acceleration for the year-old startup.
Osika pointed to the firm’s deliberate choice to remain in Europe as a cornerstone of its success. Despite receiving considerable advice early on that moving to Silicon Valley was essential for global success, Lovable stayed rooted in Stockholm. The decision not to relocate to the U.S. proved strategically advantageous, allowing the company to cultivate a distinct operational culture. Osika emphasized that building a worldwide AI enterprise from Sweden is entirely feasible, especially when a compelling mission attracts dedicated talent and fosters a collaborative, urgent work environment.
He also noted that the less frantic pace of Europe’s AI sector compared to Silicon Valley has actually benefited Lovable, providing space for thoughtful growth. This approach has even enabled the company to attract top professionals from prominent U.S. tech firms like Notion and Gusto to join its Stockholm team in person, a reversal of the typical talent flow that investor Zhenya Loginov from Accel described as “flipping the script.”
A key element driving Lovable’s progress is its vibrant open-source community. Osika expressed appreciation for the contributors who actively discuss and refine technology on platforms like Discord, describing their ongoing input as a powerful force behind the company’s development.
Lovable’s success story unfolds against a backdrop of surging interest and investment in AI-assisted coding tools. Just last week, another AI coding assistant, Cursor, secured $2.3 billion in funding, achieving a valuation of $29.3 billion in a round also led by Accel. Since its inception a year ago, Lovable has raised over $225 million in venture capital. Its most recent funding was a $200 million Series A round in July, led by Accel and supported by more than twenty other investors, which valued the company at $1.8 billion.
(Source: TechCrunch)
