EQT-Managed EU Fund Co-Leads Lovable's $400M Round at a $13.3B Valuation

The Scaleup Europe Fund, a EUR 5 billion European investment vehicle managed by Sweden's EQT, has co-led a $400 million funding round for Swedish company Lovable at a valuation of $13.3 billion, alongside Menlo Ventures and with participation from Balderton Capital, Tencent and World Innovation Lab.

Lovable operates a platform that allows software to be built by describing it in natural language. Its annual revenue run rate is approaching $600 million after roughly tripling since December, while more than 60 million projects have been built on the platform and the company was already profitable before the round closed.

The European Union established the fund to limit the relocation of successful European companies to the United States, and this deal comes days after its first investment, when it co-led a EUR 1 billion round for ICEYE.

The transaction represents the first large-scale test of European public-backed capital helping to price top-tier artificial intelligence rounds. Analysts expect that if such participation becomes a systematic co-leading pattern, clearing prices for European growth rounds will drift upward independently of company fundamentals.

Key terms explained:

Sovereign-adjacent capital: Public or state-linked money invested through professional managers, not governed by profit criteria alone.

Valuation: The estimated market value assigned to a company when a funding round closes.

Annual run rate: An estimate of yearly revenue based on the latest month or quarter extrapolated across the year.

Co-leading: Two investors jointly setting a round's terms and providing the largest share of its capital.

Clearing price: The final price at which a deal is completed once buyer and seller agree.

Fundamentals: A company's actual performance indicators such as revenue, profit and growth rate.