lovable’s ceo isn’t too worried about the vibe-coding competition

Lovable's Rapid Ascent in the AI Coding Landscape

The Bella Center in Copenhagen was filled to capacity as Anton Osika, co-founder of the AI coding application Lovable, addressed attendees at this year’s TechBBQ conference.

Empowering Users with No-Code Solutions

Lovable focuses on enabling individuals to create applications and websites, particularly those lacking traditional coding skills. It has emerged as a leading example within the growing field of “vibe coding,” where users can direct AI models to generate code, websites, or complete applications.

Impressive Growth and Valuation

The Swedish company has experienced remarkable growth, exceeding $100 million in Annual Recurring Revenue (ARR) within just eight months. This achievement was followed by a $200 million Series A funding round, resulting in a $1.8 billion valuation – establishing Lovable as Europe’s fastest-growing unicorn.

Reports from the Financial Times indicate that investors are anticipating a Series B funding round, potentially valuing the company at $4 billion. However, Lovable has not yet signaled any interest in pursuing this option.

A Vision for Comprehensive Software Development

In a discussion with TechCrunch, Osika articulated a vision for Lovable to become the premier platform for building software products. The goal is to guide founders through every phase of product development, facilitating the creation of AI-native companies.

“For businesses, numerous setup tasks are essential, including payment processing, user understanding, and potentially even company incorporation,” Osika explained. “My ambition is for Lovable to provide assistance with all of these aspects.”

Expanding Capabilities with AI Agents

In late June, Lovable introduced an agent capable of reading files, debugging errors, conducting web searches, generating images, and locating files. This release represents an initial step towards realizing the company’s broader vision.

User Base and Pricing Strategy

Lovable currently boasts over 2.3 million active users, with 180,000 of them being paying subscribers. The company’s pricing structure was determined by simply calculating the costs required to sustain operations, according to Osika.

He highlighted successful use cases, including a marketer developing a sales training platform and an engineer managing multiple small businesses through the platform.

“Previously, Lovable was excellent for creating initial drafts. Now, users can construct complete products, mirroring the experience of collaborating with a professional developer,” he stated.

Addressing Concerns About AI-Generated Code

While AI-generated code has faced criticism for its potential fragility, being more suitable for demonstrations than production-level applications, Osika remains unconcerned. He emphasized the importance of code review, regardless of whether it originates from AI or human developers.

Navigating the Competitive Landscape

Currently, Lovable leverages foundational models from companies like Anthropic (Claude) and OpenAI (GPT-5). A degree of competition exists, as both Anthropic and OpenAI offer their own product-development services – Claude Code and Codex, respectively.

Although these systems aren’t identical to Lovable, it’s conceivable that either model provider could attempt to attract Lovable’s users with a strategic product adjustment.

Focus on Product Excellence and Flexibility

Osika doesn’t appear overly worried about this potential competition. He affirmed that Lovable is solely focused on building the best possible product, which it achieves by utilizing a diverse range of AI model providers.

“This positioning gives us an advantage over providers who are limited to their own models,” he explained. “Access to numerous foundation models provides our users with unmatched capabilities, while also granting us the flexibility to scale rapidly without the burden of redundant infrastructure.”

“The possibilities are continually expanding,” he added. The team prioritizes speed, security, and a user-friendly experience to maintain a competitive edge.

“By consistently delivering on these fronts, we will cultivate greater trust with our customers than anyone else,” he concluded.

Comparison to Figma’s IPO

Just one month ago, Figma, a peer of Lovable in the app-design sector, launched a successful IPO, achieving a $19.3 billion market capitalization on its debut day. When questioned about Figma, Osika reiterated his company’s commitment to prioritizing its users’ needs.

“Our primary focus is on listening to our users and providing them with the solutions they require,” he said.

Strong Ties to the Swedish Tech Ecosystem

Lovable is deeply rooted in the Swedish tech market. Osika was raised in Stockholm and established the company there. The company’s investor base, as documented by PitchBook, includes prominent European firms and angel investors.

These include Stefan Lindeberg (Nordic Game Ventures; Sweden), Fredrik Hjelm (founder of Guestit; Sweden), Greens Ventures (Sweden), Hummingbird Ventures (London), and 20VC (founded by Harry Stebbings, who launched Project Europe to increase investment in the ecosystem; London).

Notable Investors and Clients

Revolut CEO Nik Storonsky, based in Europe, is also an angel investor in Lovable, as is Swedish founder Sebastian Siemiatkowski, whose company Klarna is a client of Lovable. Other prominent clients include HubSpot and Photoroom.

Impact on the Nordic Startup Ecosystem

Throughout the conference, investors and founders expressed their enthusiasm for Lovable’s commitment to remaining in Europe and its positive impact on the Nordic startup ecosystem.

“The success of Lovable and other European AI unicorns benefits all of Europe,” stated Shamillah Bankiya, a principal at the U.K.’s Dawn Capital, in an interview with TechCrunch. While not an investor, her firm has been following Osika’s progress as a founder and has invested in other AI companies.

“Beyond the direct employment generated by these companies, the broader effect is cultural,” she continued. “It elevates the aspirations of ambitious founders across the continent and demonstrates what they can achieve.”

Commitment to European Roots

Osika affirmed Lovable’s intention to remain based in Europe, although the company does maintain a small team in Los Angeles (representing approximately 6% of its workforce). While many European tech companies eventually relocate to the United States for increased capital and opportunities, Osika doesn’t foresee Lovable following suit, at least for the time being.

Investing in the Next Generation of Founders

Following Lovable’s success, Osika has begun investing in other founders. Dennis Green-Lieber’s Danish customer intelligence company, Propane.ai, recently received an investment from Osika as part of its $1.2 million pre-seed round.

Green-Lieber believes that Lovable validates the sentiment already prevalent in the Nordic region: that they possess world-class talent and can compete on a global scale.

“We’ve seen giants like Zendesk, Unity, Klarna, and Spotify emerge over the past decade, but Lovable demonstrates that with small teams, a global mindset, and unwavering dedication, you can still build a category-defining company,” he continued. “As a founder, I can attest that this achievement has ignited a fire within our ecosystem.”

This article was updated to clarify the round Osika invested in and to specify the size of the Lovable team located in Los Angeles.