How Lovable Became Europes Fastest Growing AI Unicorn

When Anton Osika, co-founder of the AI coding app Lovable, took the stage at this year’s TechBBQ conference in Copenhagen, every seat in the house was taken. His company is at the forefront of a movement that's changing how we build software.

The Meteoric Rise of an AI Unicorn

Lovable is a standout in the popular AI category known as "vibe coding," which empowers users, especially those without technical experience, to create apps and websites by guiding AI models. This innovative approach has resonated deeply with users and investors alike.

In an astonishing eight-month sprint, the Swedish company surpassed $100 million in annual recurring revenue and, as reported by TechCrunch, raised a $200 million Series A at a $1.8 billion valuation, making it Europe's fastest-growing unicorn. The Financial Times has noted that investors are already lining up for a Series B that could push its valuation to $4 billion. So far, Lovable has not signaled any interest.

The platform now boasts more than 2.3 million active users, with 180,000 of them being paying subscribers. Osika mentioned his favorite use cases include a marketer building a sales training platform and an engineer managing multiple small businesses on the platform.

A Vision Beyond Vibe Coding

Speaking with TechCrunch, Osika outlined a bold vision for Lovable to become the ultimate platform for building software products. He wants to support founders through every stage of development to help them build AI-native companies more easily.

“If you’re running a business, there are a lot of things you want to set up, like payments, understanding your users, and in the future, maybe even like ‘I need to incorporate my company,’” he said. “I want Lovable to help with all these things.”

As a first step, Lovable recently released an agent in beta to help users with tasks like reading files, debugging errors, searching the web, and generating images. “In the past, you could create a really great first draft using Lovable. Now, you can build a full product, and it’s much more like working with a real developer,” Osika added.

Navigating Competition and Criticism

AI-generated code has faced criticism for being overly brittle and better for demos than final products, but Osika remains unconcerned. He emphasized that all code should be reviewed before publication, “whether it is AI or human-generated.”

Lovable operates on foundational models from providers like Anthropic and OpenAI, who have their own competing services. However, Osika sees this as a strategic advantage. By leveraging various AI models, Lovable offers its users “unmatched capabilities” and flexibility that model providers, who must stick to their own tech, cannot match.

“That puts us in a better position than them,” he argued. To stay ahead, the team focuses on speed, security, and a seamless user experience. “If we continue to do that, we’re going to build more trust with our customers than anyone else,” he said. “Simple as that.”

Championing the European Tech Ecosystem

Osika, a Stockholm native, founded Lovable in Sweden, and the company remains deeply connected to its European roots. Its investor list is a who's who of top European firms and angels, and notable clients include Klarna, HubSpot, and Photoroom.

Shamillah Bankiya, a principal at the UK’s Dawn Capital, highlighted the cultural impact of this success. “It raises the bar for what ambitious founders across the continent can dream of and achieve.”

While many successful European tech companies eventually move to the U.S., Osika plans for Lovable to stay nestled in Europe, though it maintains a team in Los Angeles. His success has even inspired him to invest in other founders, such as Dennis Green-Lieber of the Danish company Propane.ai.

Green-Lieber said Lovable’s journey proves that world-class talent in the Nordics can compete globally. “As a founder, I can say it’s lit a fire in our ecosystem to see this happen right here at home.”