Lovable Nears 8 Million Users and Rumored $5B Valuation

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1:26one year old. This is absolutely incredible. They're an AI coding startup, and they're looking at hiring top talent from a lot of the top San Francisco companies because they're actually based in Stockholm. So this is a really interesting company. And recently, Jamie has been doing some really cool stuff with it. So Jamie, why don't you tell them about what you have been building and how they can get access to it? Yeah, so I actually just use Lovable this past week to create an app that is kind of like a real estate returns calculator. Specifically, if you use a HELOC, Home Equity Line of Credit versus Regular.

1:58I wanted to create a lead magnet for a paid community that I'm a part of because every user I get to sign up for that community, I get a$500 referral fee. So I was like, wow, that would be definitely worth it to try to get some people to join. So I made this lead magnet. And so in our school community, which you should definitely check out, it's called AI Hustle. I break down the exact strategy I use to create this with lovable and kind of how I'm incorporating it into my content and workflow. So I mean, if you want to check that out, our school community is a great place to be. There's over 300 members and we have bonus content we release every single week over there.

2:35Things we talk about, things we're actually doing in the AI world to make money on the side and also grow our businesses. So it's a really, really valuable place. And also we have a great community of people who are doing the same thing. So we'd love to have you be a part of it. right now we're having our Black Friday special, believe it or not. Yes, it's$19 a month. And so we marked it down for a limited time only. You can lock that price in and it will stay that price forever, no matter how much we raise the price in the future. So you're definitely going to want to check it out. But Jayden, why don't you tell them about what's going on with Lovable?

3:08Okay. So this is a tool that I have personally been using a ton. If you go over to the AIbox.ai homepage, I actually used it to design that homepage. And the reason I bring that up is because, which is my software company, by the way, if you haven't signed up for AI Box, I would check that out too. But the reason why I bring it up is because you can use Lovable to design landing pages and beyond the landing pages, you can actually use it now to design tools. It integrates with AI, it integrates with backend, it integrates with, you can make full apps. And so you kind of have this multi kind of approach to it where you can use it to build a project from start to scratch.

3:49It will take some time. You do spend, I mean, I've spent probably over$1 ,000 in credits on lovable. So like it's not free if you're trying to build really robust things. But when it comes to what I would have paid a front end designer and a designer. So first you pay a designer to go and design on Figma. And then you pay a front end designer to go and actually integrate it or, you know, build it out on your front end of your website. I would have paid easily five to$10 ,000 to have the work that I got done on Lovable for like a thousand bucks. So it's like, it's 10 times cheaper. It's exactly what you want.

4:22I'm not a technical person. I'm not a coder or a developer. So for me, it was amazing where I literally could design it on Lovable. My CTO told me like, hey, these are like the dependencies you can use. These are the packages you can use. Basically, it's a little bit of code. You ask your developer who's going to be doing it, what dependencies and packages, or you don't have one, then you could just go, you know, freestyle and let lovable choose. But basically, I just told it, like, build it on these rails in this framework, it built the whole thing, I gave him the code, and he instantly just uploaded it and it plugs in, you got to tie it together a little bit, but it was like ready to go.

4:53So I am in love with lovable. I think it's an amazing tool. And evidently, a lot of people think that because they have now reached over 8 million users, Their CEO, Anton Osika, was talking at the big web summit recently, talking about that. It's incredible because apparently they're seeing about 100 ,000 new products built on Lovable every single day, which is, it's beyond just like a lot of users, which you see with these AI companies sometimes, but it's like a lot of users and a lot of usage. And from my own experience, I know they are making a lot of money from 100 ,000 projects, because if I am on the$300 a month tier right now, I know there's a lot of other people that are spending a lot of money to get stuff done.

5:35So they've raised over$228 million in total funding. They did a$200 million round this summer, and they were valued at$1.8 billion. So this is a company that has grown very fast, but I think it has very sticky growth. The sneakiest thing I think they've done for sticky growth, so it's not just like a flash in the pan, is that they actually let you register a domain name through them. So like if I wanted, you know, best music AI tool.com you could go register that through them you could use lovable to build the website but now it's all on there and like if you want to port that website over somewhere else or register the domain somewhere else it's kind of hard to move domains around or for most people it's just a tricky headache so people will stick with them and so I think that's like kind of a genius uh stickiness strategy that they've solved right there yeah I will say I uh for my the tool I built, I bought the domain through GoDaddy and have yet to be able to connect it because GoDaddy sucks.

6:29So next time I would probably just purchase a domain through the actual website or through Lovable because it was so much easier to connect. But either way, it's a really cool tool. And I will say when it was first released, if you've tried it out already, when it was first released, it wasn't that impressive. It was good on the design side, but a lot of the backend stuff wasn't up to par, but now they've really come a long ways. And it's really good at connecting all the backend stuff that someone like me has no idea how to do. Yep. Yep. So I think they've done some amazing work there. And of course we can talk about, oh man, it's incredible.

7:06They had like a$1.8 billion valuation. Well, it seems like they are not stopping. So with all of this growth, there's a whole bunch of rumors right now. Now some people are saying this is just their own investors that have sparked those rumors. So, you know, I'd be wary of them, but basically there's rumors right now that there's some new backers that want to invest at a$5 billion valuation. I don't actually think that would be very shocking considering how fast the company's growing and also considering how I use it, how much I love it, and how much I use it. So for me, I'm like, yes, that would make sense.

7:36It's a very sticky company. It makes a great product. They're going to grow very fast. And so the CEO has not confirmed any of those rumors, but$5 billion valuation, I think is something on the table. It's probably growing very fast. They use a mix of free and paid tiers. So you can try it out for free if you haven't already. Lovable.dev, I believe. I think it's a great tool. Go give it a try. You just prompt type in the type of website or tool you want to build and it spits something out really easy, really fast. They also have the paid tier. Like I mentioned, I'm on$300 a month paid tier because eventually you're, I think you only get like three revisions on the free tier.

8:13And I use like a hundred revisions a day where I keep asking it to tweak things and add things and change things and like get really in depth on it. They have hit$100 million in annual recurring revenue just in just in this June, they shared that out. So I mean, the company is making a ton of money right now. There's an interesting dilemma, though, that a lot of people are like, okay, great, you hit$100 million. There was kind of this post going viral on on Twitter, I believe over the last, like, like last month, it was like, maybe like two or three weeks ago. But everyone was talking about the fact that they thought vibe coding was not sustainable.

8:48It was just a boom and it was going to disappear. I'll be curious your take on this, Jamie. I don't think so, man. I think there's so many entrepreneurs out there like me who have like an idea in their head, but they don't have the resources to make to a good app, you know? And so they just never do because of the extremely high cost, at least previously, of even attempting an app. So it's going to open up a whole new world, I think, for people to be able to do apps, especially entrepreneurs. So I think it's really exciting yeah and so one thing that's really interesting there's all this basically all of this was um this like the vibe coding is over was sparked by two things and i will say that one of them is pretty um accurate and that is that the security is a little bit questionable when it comes to this there was a drama where there was an app that was vibe coded and it had like i think like 72 um thousand users data leaked because basically the way the app was written was that all like, so you had to sign up for it with your, your driver's license.

9:48And when you signed up for it with your driver's license, and you put your your driver's license in, it was just stored in like a public file, basically. And so because it was stored in this public file, people were able to access it, all these driver's licenses, and your addresses of everyone that used the app got leaked. And so I made a big database of it, it was horrible. So that is like the big concern here. I think they're taking measures to address the security, but I don't think it's something that's 100 % solved. If you're not a developer, it's hard to know how the whole thing is built.

10:19I don't know. Is that something that ever worries you, Jamie? Yeah, it does, honestly. I mean, I could see how that would be a concern specifically for other people. You know, the app that I built had, I was going to do like, you have to have an email to access the tool, but I just decided that was just adding an extra step and making it harder for people to actually use the tool. So what I did is I, instead of doing like the give me your email address, email collection thing. I just made it just an open tool. And then if they want more info, they can click the link below. But yeah, I think security for people moving forward definitely should be a concern, but I think it's something that there's definitely has to be some kind of a solution to.

10:56Anyways, if you enjoyed this episode or got any value out of it, please be sure to leave us a rating or review wherever you listen. We really appreciate those and they help us be able to reach more people. And again, check out the AI Hustle School community if you're interested in growing your business or just making money on the side using AI. Thanks for listening and we'll see you next time. You're listening to a podcast right now, driving, working out, walking the dog. If you're into podcasts, chances are you have something to say too. With rss.com, starting your own podcast is free and easy.

11:26Upload an episode and we distribute it to Apple Podcasts, Spotify, Amazon Music, and more. Track your listeners, see where they're from, and start earning from ads just like this. If you've been thinking about starting a podcast, this is your sign. Start your new podcast for free today at rss.com.