Europe has more AI talent than the US

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Startup Feature
How Lovable Became Europe’s Most Profitable AI Startup

Lovable is a Stockholm-based AI startup that lets anyone build software without writing code. Users type what they want, and the platform generates fully functional applications in minutes.

The startup has gone from early prototype to breakout business in less than a year. In May 2025, Lovable crossed 50 million dollars in annual recurring revenue. They did all of this with under 20 million in funding and with a team of less than 15 coders.

While most of the attention in AI has centered on US giants and billion-dollar rounds, Lovable has taken a different path. It is profitable, product-led, and quietly scaling from inside Europe.

Building Useful Tools With a Small Team

Lovable started in 2024 as an open-source project by Anton Osika and Fabian Hedin. They built a tool that allowed users to generate working software without writing code. Early users included solo founders, designers, and small teams that needed to launch digital products quickly.

The product gained traction because it solved a clear problem. It allowed users to go from an idea to a working app in minutes, without hiring engineers or managing infrastructure.

That approach resonated. Within six months of launch, Lovable raised a six point eight million euro pre-seed round. A $15 million follow-on round closed in early 2025.

Unlike many AI startups, Lovable has not relied on high burn or heavy infrastructure. Its growth has been tied to revenue, not purely AI hype.

Why Staying in Europe is Part of the Strategy

Lovable is not relocating to the United States, despite competing directly with Silicon Valley startups. Instead, the team is doubling down on Europe. The company’s headquarters remain in Stockholm, with plans to open a second office in London to access more engineering talent without pulling resources from its core base.

Rather than relocate to the United States, Lovable is hiring top talent across Europe. Its team includes engineers from companies like Spotify and Stripe, as well as former startup founders. The startup is attracting top engineering talent that would rather stay in Europe than leave for San Francisco

Lovable’s approach is lean and focused. The startup has raised far less capital than its US competitors, but it is already profitable with strong revenue growth. Its team has doubled since February, but hiring remains deliberate. The goal is not headcount, but output.

By staying in Europe and avoiding unnecessary scale, Lovable is showing that a focused product and strong economics can still compete with the AI race of US startups.