Lovable, an AI-focused startup, has closed a $400 million funding round, Sifted reported. The round includes participation from the European Union’s Scaleup Fund, a relatively new financing vehicle designed to help European technology companies grow without relying solely on capital from outside the continent.
The size of the raise places Lovable among the more heavily funded AI startups to emerge from Europe in recent years. Large rounds of this scale have historically been dominated by US and Asian investors, particularly in artificial intelligence, where compute costs and talent competition push funding needs higher than in many other sectors.
The EU Scaleup Fund itself reflects a broader policy push within the bloc. European officials have repeatedly voiced concern that promising startups either relocate abroad or get acquired by larger foreign firms once they reach a certain size. The fund is intended to address that gap by supplying late-stage capital directly, rather than leaving European companies dependent on venture firms based in the United States or elsewhere.
Details on Lovable’s exact valuation, other participating investors, and the specific use of proceeds were not included in the available reporting. Sifted’s report did not specify how the $400 million breaks down between the EU fund and any private co-investors, nor did it confirm a timeline for deployment of the capital.
The involvement of an EU-backed fund in a round of this size is notable in itself. Public or quasi-public capital participating alongside private investors in a nine-figure AI raise suggests policymakers see strategic value in keeping such companies anchored in Europe. It also raises questions about how EU-backed funds will balance commercial investment criteria with broader industrial policy goals as they deploy larger sums into fast-moving sectors like AI.
For the wider European startup ecosystem, the raise may serve as a reference point for other companies seeking growth capital without turning to US-based venture firms. Whether the Scaleup Fund becomes a repeat participant in similarly sized rounds, or whether this deal is an outlier, remains to be seen based on current reporting.
Sources disagree on this story
This article was published before the reports below were compared. The reporting above stands; what follows is where the published accounts do not agree.
CryptoBriefing dates Lovable's founding to late 2023, while Sifted and The Cryptonomist EN place its founding or launch in 2024.
What all sources agree on
- Lovable raised $400m in a Series C round at a $13.3bn valuation.
- The round was led by Menlo Ventures and the EQT-managed Scaleup Europe Fund.
- Lovable previously raised a $200m Series A and a $330m Series B at a $6.6bn valuation.
- Lovable is Stockholm-based and hit $500m in ARR.
Where the reports disagree
1When Lovable was founded/launched
Lovable was established in late 2023 and reached unicorn status within approximately 18 months.
The Stockholm-based company, which was founded in 2024, hit $500m in ARR (annual recurring revenue) in June.
Since Lovable launched in November 2024, users have created more than 60 million projects on the platform
What would settle it: Lovable's own corporate registration record or founder statement specifying the company's founding date.
What to make of it
Treat the $400m Series C figures, valuation, and lead investors as established across all three reports; the exact founding date of Lovable (late 2023 vs. 2024) remains unresolved and should not be repeated as settled fact.
Market Impact
A $400 million raise, if confirmed at that scale, would represent significant fresh capital entering the European AI sector at a time when funding for AI companies globally has been concentrated in a small number of very large deals. Investors watching the European tech landscape may view EU-backed participation as a signal that public capital is increasingly willing to compete for stakes in high-growth AI firms rather than leaving that space entirely to private venture funds.
The broader implication concerns the EU Scaleup Fund’s role going forward. If it continues to co-invest in large rounds, it could shift how European startups approach fundraising strategy, potentially reducing reliance on US-based growth investors for late-stage rounds. That shift, if it materializes, could have longer-term effects on where AI companies choose to headquarter and where they list or seek future liquidity events.
The Lovable raise, as reported by Sifted, underscores the European Union’s growing appetite to back large AI funding rounds directly through dedicated public capital. Further details on the deal’s structure and its broader effects on the region’s startup financing landscape are likely to emerge as more reporting surfaces.
Frequently Asked Questions
What is Lovable?
Lovable is an AI-focused startup that has raised $400 million in a funding round, according to a report from Sifted. Further company-specific details were not included in the available reporting.
What is the EU Scaleup Fund?
The EU Scaleup Fund is a financing vehicle created by the European Union to provide growth-stage capital to European technology companies, aiming to reduce their dependence on non-European investors as they scale.
How large was Lovable's funding round?
Sifted reported the round at $400 million, with participation from the EU Scaleup Fund, though the full investor breakdown was not specified.
Why does EU-backed funding in AI startups matter?
Public capital participating in large AI funding rounds signals policy interest in keeping fast-growing tech companies based in Europe, rather than seeing them relocate or rely solely on foreign investors.