Creandum has lead an investment round of $15 million in Lovable, the Swedish based AI-driven software builder that aims to allow everyone (especially non-software engineers) to develop software.
Building software, even very simple programs, as a non-software engineer is truly a bit of magic. Which is one reason that Lovable has caught on with 30,000+ paying customers and annualized revenue of $17 million, all while spending less than $2 million according to a TechCrunch article.
Lovable is a really good product with extraordinary traction, but as a startup person and investor I find Lovable to be a great example of why startup investing is difficult.
There are many things that make an investment in Lovable seem obvious (and for venture firms getting to that conclusion the main problem is that there was only room for one new venture firm and it was for Lovable to choose which one), but there are also several things that make 99 % of really good investors think more than once before offering a term sheet.
On a venture investor inside baseball side note: the round is being labeled a pre-Series A even if it from the outside looks like a hot Series A to me. As Lovable had previously raised $6.8 million in a pre-seed round from Hummingbird Ventures, byFounders and angel investors, calling it a seed round would in my mind been more elegant than pre-Series A.
I’m looking forward to see Lovable go on and build something very big.
