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    Deal Briefings
    16/06/2025

    #44 Lovable – The AI Software Engineer Scaling at Light Speed

    Dela:

    Welcome to this Scalex Deal Briefing. My name is Ashley, and I represent Scalex Growth Partners where we specialize in helping Nordic SaaS and tech companies optimize their valuation, scale operations, and attract investors. As an entrepreneur and advisor with over 30 years of experience in corporate finance, private equity, and venture capital across London and the Nordics, I’m passionate about helping SaaS companies unlock their full potential.

    Deal Overview

    Stockholm-based AI startup Lovable has secured a €14.3 million pre-Series A funding round led by Creandum , with participation from notable angel investors including Charlie Songhurst (Meta board member), Adam D’Angelo (CEO of Quora), and. Thomas Wolf Thomas Wolf (co-founder of Hugging Face). The company has demonstrated remarkable early traction, generating €16.2 million in ARR within just three months of launching its AI-powered development platform.

    Company Overview

    • Name: Lovable Labs Sweden AB
    • Founded: 2023 (registered in November)
    • Headquarters: Stockholm, Sweden
    • Legal Entity: Private Aktiebolag (AB), founder-controlled (each founder owns 25–50%)
    • Employees: ~15 (early 2025)

    Founders:

    • Anton Osika (CEO) – Former co-founder of Depict.ai (YC-backed, raised $20M), worked at CERN and Sana Labs
    • Fabian Hedin (Chairman) – Developed assistive technology for Stephen Hawking, worked with SpaceX engineers

    Product Overview

    Lovable offers an AI-native software creation platform that generates full-stack web applications from natural language prompts. It bridges no-code usability with editable, exportable full-code solutions. Key features include:

    • Rapid prototyping and deployment
    • GitHub and Supabase integrations
    • Natural language refinement
    • Exportable, production-grade code

    It also maintains its open-source origin tool, GPT-Engineer, targeting developer communities.

    Traction & Metrics

    • Users: 140,000+ (as of Jan 2025)
    • ARR: $17M (€16.2M) by Feb 2025
    • Growth Rate: Adding ~$2M ARR per week in early 2025
    • Profitability: Achieved early profitability according to founders
    • Applications Built Daily: 25,000+

    Funding History

    • R1 – Seed Round (2024): €6.8M from Hummingbird Ventures , byFounders , and angels
    • R2 – Pre-Series A (2025): $15M led by Creandum, with participation from Adam D’Angelo, Thomas Wolf, Charlie Songhurst, and Stefan Lindeberg

    Market Positioning

    Lovable competes in the rapidly growing AI-assisted no-code/low-code market, positioning itself uniquely as an AI software engineer. Key differentiators:

    • Full code ownership (vs. locked-in no-code platforms)
    • Developer-focused and community-first growth
    • Integration with modern DevOps tools

    Comparable Companies: Replit AI, Webflow, Bubble, Vercel v0

    Market Context:

    • Tailwinds: Surge in AI/agent tools, no-code adoption, developer productivity platforms
    • AI SaaS Valuation Benchmarks: 2024 EV/ARR multiples range between 10–20x. With Lovable’s ARR trajectory, a 25.8x multiple implies an estimated €439M valuation.

    Strategic Implications

    • Momentum: Viral launch and scaling via community channels (Product Hunt, GitHub, Discord)
    • Business Model: SaaS with freemium and paid tiers; includes enterprise pricing
    • Go-to-Market: Developer and product teams, with future B2B integrations
    • Global Outlook: Positioned for Series A in 2025; US market entry likely

    Risks & Considerations

    • Dependency on LLM providers (OpenAI, Anthropic)
    • Scaling infrastructure to meet rapid user growth
    • Competition from Big Tech and other AI agent startups

    Scalex Insights

    • Valuation Perspective: High revenue growth and early profitability align with premium AI SaaS benchmarks
    • Lessons for Founders: Community-first open-source roots can drive rapid adoption
    • Future Watchpoints: Series A round, geographic expansion, enterprise adoption, LLM infrastructure evolution

    Final Thoughts

    Lovable AI has rapidly emerged as one of Europe’s most promising AI-native software startups. Its community-driven growth, elite investor support, and compelling product vision place it firmly on track to define the next generation of app development.

    What are your next steps as a SaaS founder?

    Are you a founder looking to scale up, raise funds, or plan for an exit? At Scalex Growth Partners , we specialize in helping Nordic software companies in the 10M SEK to 100M SEK ARR range achieve their growth ambitions.

    Our tailored services include:

    • Valuation Services: Gain clarity on your company’s worth and key value drivers.
    • M&A Advisory: Expert guidance for fundraising rounds or planning your next big exit.
    • LEAN Board Methodology: A specialized framework for software companies to drive valuation creation via strategic focus and effective governance.
    • Strategic Scale Planning: Actionable, data-driven strategies to help you scale smarter and create value.

    With deep expertise in SaaS and tech, we’re here to support your growth journey. Contact us today to discover how we can help unlock your company’s full potential.

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