Lovable, Europe's most closely watched vibe coding startup, has officially confirmed a massive new funding round at a $13.3 billion valuation.

The $400 million Series C was co-led by Menlo Ventures and Scaleup Europe Fund, with more than a dozen additional participants. Insiders had tipped off the deal last month, and now it's official.

Lovable hit $500 million in annualized recurring revenue (ARR) in June. How does that stack up in the AI coding space? For comparison: Cursor's parent company Anysphere was valued at under $3 billion in early 2025, while Lovable was valued at $6.6 billion when it raised last December.

Eight months, and the valuation has doubled.

The previous $330 million round was also led by Menlo Ventures, with CapitalG as co-lead.

**Lovable's growth has outpaced most expectations.** The company now hosts 60 million projects and attracts 900 million monthly visitors.

As the scale has grown, so has the backend architecture. Lovable has launched its own proprietary AI models while still offering a choice of leading frontier models. In June, it signed a multi-year agreement with Google Cloud, and usage has since quintupled.

Lovable is also investing in other European startups, including Denmark's Atech, which aims to bring the vibe coding philosophy to hardware design.

One notable background detail: Regent, one of the participants in this round, is the parent company of TechCrunch.

When vibe coding caught fire in 2025, many dismissed it as a passing fad. Lovable has responded with hard funding numbers.

At a time when AI application layers are broadly facing valuation corrections, Lovable's ability to command this valuation shows that capital markets remain enthusiastic about AI coding tools.

Or perhaps, capital markets are finally beginning to understand that AI coding is not just a gimmick, but a real, viable business model.