Lovable valued at $6.6B in third 2025 round as AI funding splits from edtech

CNBC reported the round on 16 December, citing two people with knowledge of the deal who asked to remain anonymous. U.S. venture firm Accel is participating, the sources said. Khosla Ventures is also in, according to one of them. Lovable, Accel and Khosla Ventures had not responded to requests for comment when the article went live.

Forbes had reported in November that the round would value the company at "around" $6 billion. The final figure is higher.

Three rounds in twelve months

The Stockholm company was founded in 2023. Its July round brought in $200 million and carried a $1.8 billion valuation. Backers included Accel, Creandum, Klarna founder Sebastian Siemiatkowski, ElevenLabs founder Mati Staniszewski and Synthesia founder Victor Riparbelli. That was its third raise of 2025, and the newest round is the fourth.

The revenue curve explains the pace. Lovable reported $200 million in annual recurring revenue in November, having first crossed $1 million in ARR less than a year earlier. When it published those ARR figures, the company said 100,000 projects were being built on its platform every day. Its tool runs on AI models from providers such as OpenAI and Anthropic, so users can build apps and websites from text prompts without writing code.

It is opening offices in Boston and San Francisco while remaining based in Stockholm.

The comparison set is expensive. Anysphere, maker of the coding tool Cursor, raised $2.3 billion at a $29.3 billion valuation in November, CNBC reported. Replit hit a $3 billion price tag after picking up $250 million in September, and Vercel closed a $300 million round at a $9.3 billion valuation. Accel has backed several of these, including billion-dollar rounds for Cursor and for Mira Murati's Thinking Machines.

The other end of the market

Not every category is getting the same treatment. Rest of World reported on 23 April, citing Tracxn data, that global edtech investment peaked at $16.7 billion in 2021 and fell below $3 billion in 2025. The number of companies launched in the sector dropped from almost 10,500 in 2020 to 645 in 2025.

HolonIQ, which advises governments and investors on education, wrote in a 6 February post that capital had concentrated in "AI-enabled products, workforce-aligned platforms, and K-12 operations solutions that address cost or operational pressures." The firm described the shift as one from volume to intention. Loot Drop, a database of more than 1,700 startup closures, pointed to high customer acquisition costs, long institutional sales cycles and weak retention as structural problems for consumer education startups.

"The winners will likely be vertical-specific tools that integrate into existing workflows rather than platforms trying to replace entire educational institutions," Loot Drop's analysis concluded.

Two names show how far the correction went. Byju's, once valued at $22 billion, collapsed under a financial crisis. Yuanfudao, valued at $15.5 billion before China's July 2021 "double reduction" policy, ended its core tutoring business and now ranks among the top six players in Chinese AI learning hardware, selling devices it calls learning machines.

The contrast is not only about sector fashion. Lovable sells a tool that a developer or a product manager can put to work the same afternoon, on a card, with no procurement committee. Edtech sold institutional contracts with measurable outcomes that were hard to measure. One market pays for capacity that gets used immediately; the other pays for a promise about children's learning that takes years to verify.

None of this makes Lovable's valuation safe. A $6.6 billion price against $200 million in ARR is a multiple that assumes the growth rate holds and that AI coding tools do not commoditise as model providers move up the stack. Accel's participation is a bet that they will not. The sources spoke anonymously because the round is private, so the terms beyond the headline number, including liquidation preferences and any secondary sales, are not public.