My personal favorite vibe coding startup, Loveable, has raised $330 million at a $6.6 billion valuation. This is absolutely massive for a company that is almost a year old. They have had an absolutely incredible run up. And I understand why they've been able to raise this money as someone who is a really loyal user and has been super impressed with their product.
I'll give you a little bit of a perspective of where I think this is going in the future, how they're able to grow so fast, why they've been able to raise so much money, and what the future of Loveable is with this new $330 million. Before we get into that, I would love for you to try my new AI app and tool builder called AIBox. You can go check it out on AIBox.ai. You can create any sort of tool or workflow.
It will automatically link together. Multiple AI models will fill out a prompt with AI for you and have it automate different processes and workflows that you might do and create full tools. There's lots of exciting things that we'll be doing with it in the future. And in addition, we have a Playground where you can try over 40 of the top models, all for 20 bucks a month.
You can build tools, try models, go check out AIBox.ai. All right, let's get into what's going on with Loveable. Since the Swedish startup, they have more than tripled their valuation in just five months, which I think really shows how much their investors are excited for this company. It's based out of Stockholm, and they've just raised their series B, which is $330 million.
It was led by Capital G and Menlo Ventures. And like I mentioned, it has a $6.6 billion valuation. Coastal Ventures, Salesforce Ventures, Databricks Ventures, all of those were on this deal. So you have all of the top tier investors.
This new round is only a few months after they raised a $200 million series A round in July that gave them a $1.8 billion valuation, and now they're already at a $6.6 billion valuation. I think one of the earliest startups to really capitalize on AIBoom was Loveable. They had a platform that let you build software and complete applications using TextProms. Now, when they first started, when I first started using Loveable, it wasn't very good at building actual tools that could complete tasks.
And they have come a long way. So when I was originally using it, I mean, I've spent $1,000 a month on Loveable in the past, depending on projects I'm working on. If you go to AIbox.ai, that entire home page was created using Loveable. I'm not a developer.
And instead of using a designer, I'm able to get basically chat with Loveable and have it create a design that I love. That looks exactly what I want it to do. And so as far as the front end UI and stuff, I would usually go and get Loveable to create a design for me. And I give that to my developers who are working on the back end.
And I can give them the code. So instantly can integrate. In the past, you have to do basically the same process. Talking with a designer on a call, or they would get something done and get it back to me.
And I'd have to make iterations and tell them to make updates and changes. And once the design was done with the designer on Figline, we'd hand that off to the front end developers. And they would spend time trying to get that to actually look good with code. And so it was quite a process with Loveable.
I talked Loveable about what I wanted to do. I give it in natural language chat with it about the updates and the style designs and the things that I want. And then it creates it, has the code. One thing that we've done that has made this super, super easy is my development team will give me the libraries that we use and the types of code that are allowed.
I will just tell Loveable. I only use these packages, don't add any new packages, only use these libraries. And we'll do the whole thing with the limitations you give it. It will design all of that.
And then when you have to put the code into your code base, it's super easy. It's not adding new packages. This is a problem. I think the first time I used Loveable, I tried to give it to my CTO.
And he was like, dude, this has like 30 new packages that are not currently used just for your one page. So we had to work on it. But once you get over that and you figure out how to work with it, it is super fast, super easy, and really, really beautiful. A lot of major companies use Loveable, including Klarna, Zendesk, Uber.
And they love it. And for the same reason that I mentioned here, apparently Loveable has more than 100,000 new projects created on its platform. Every day, they have 25 million projects built during their first year. And they're planning to use this new capital, this $330 million as they've just raised, to essentially deepen integrations with third party tools.
And I think this is absolutely the right approach. Because when they first started, it was basically a beautiful front end design maker. But it wasn't something that was really good at making products. They've added a whole bunch of really great integrations, super base for back ends.
And databases has been added. So you can actually create tools that you can have users that sign up and you have a database for your tool. They've done a bunch of great integrations with AI tools so that you can have something like opening and running inside. And you can actually create a tool that uses AI to generate things for people.
So I think the third party software integration is really the way that this can shine. Yes, the product is good just from a standpoint of, like, you can make pretty designs with it. But now they're going to make this so it's something that's really functional and useful for teams to actually build tools with. They're going to expand their enterprise focus features, which I think is a great play.
They're going to add some core infrastructure, databases, payments, and hosting to support full-scale application development. And honestly, I think they've already started to do this. So I think they're just kind of telling everyone, like, look, we're going to do more of this. But this is already a big focus for them.
The payments is big, right? Someone could actually go and build a website that could charge people for using the tool that you build on there. All the time, people are able to make money from it when it comes to doing a lot of the hosting. And that's a really big feature.
Speaking on stage at the Slush Conference in Helsinki this year, their CEO, Anton, was talking about this. And he said that the company was growing super fast. And part of this was because of his decision to keep the business headquartered in Sweden, even though everyone told him to move to Silicon Valley. He said it was tempting, but I really resisted that.
I can sit here now and say, look, you can build a global AI company from this country. There's more available talent if you have a strong mission and a lot of urgency working together. So I don't know if it's only successful because it's out of Sweden. I feel like it may have also been successful out of Silicon Valley.
But it is, I think, a phenomenal thing that you don't have to have every AI company in Silicon Valley. So I really do appreciate that. They're a great example of that. In November, Lovable had a bunch of criticism.
There's some reports that came out that said they'd not been paying value added tax, which applies to a lot of goods and services in the EU. Their CEO confirmed the issue on LinkedIn, saying that they would get back to it and push back against the claims that the EU tax policy makes their region really inhospitable for high growth startups. So I mean, on the one hand, yes, they are like sort of the Sonomily out of Sweden. On the other hand, they really did get kind of roasted by some of these tax things, but he still defends the area.
So good for him. Obviously, this is a really popular industry. Vibe coding is getting more and more adoption. VCs are putting a ton of money into this.
Cursor is another really high profile company, which is sort of in the space, but it's more for developers. They raised $3.2 billion in November at a $29 billion valuation. So just like Lovable, that made the second funding round that Cursor did this year. And the valuation doubled between June and November.
So obviously, this sector, this space for Vibe coding, whether it's no code for non-coders or for developers, is growing incredibly fast and is printing a ton of money. And I think anytime that you let people build tools that can let them generate money, they'll spend a ton of money on it. And I think this is kind of the unlock that both Cursor and Lovable have discovered. So exciting to follow both of these companies into the future and huge congratulations to everyone on the Lovable team.
Thank you so much for tuning to the podcast. If you enjoyed this episode, make sure that you go and check out aibox.ai. If you want to build tools, if you're not a developer, the link is in the description. And I'll catch you in the next episode.