Anysphere, the developer of the AI-powered coding assistant Cursor, has raised a $100 million Series B at a post-money valuation of $2.6 billion, according to sources familiar with the deal. Returning investor Thrive Capital is leading the round, the person said.
This new funding comes four months after Anysphere raised its funding. Series A $60 million $400 million valuation from Thrive and Andreessen Horrowitz. A16Z also took part in the final round, but this time he did not co-lead it.
Thrive declined to comment, and neither the company nor a16z responded to our request for comment.
TechCrunch reported last month that investors including Index Ventures and Benchmark. They fell over themselves. It's an opportunity to back the company. But apparently, Anysphere is growing very fast; The existing VC didn't miss the opportunity to double down on the bet, despite a 6.5x jump in value in a round it completed a few months ago. Interest in backing the company and who will win the deal have been widely watched by Valley insiders. Flagged. From an X account called Arfur Rock
Augment, the market for AI-powered coding assistants; Codeium, Crowded with options like Magic and Poolside, this is one of the areas where AI has found a solid, profitable path. They are chasing Microsoft's GitHub Copilot, but none of these tools are as popular among developers as Cursor. Starting the free version raises the stakes.
However, Anysphere's revenue grew from $4 million in annual recurring revenue (ARR) in April to $4 million per month in October, sources told TechCrunch. That means the company's ARR in October was $48 million, and in the latest round, Anysphere was valued at more than 50 times its revenue. (If the company's rapid revenue growth continues, the final deal valuation is likely to be slightly lower.)
Cursor offers developers a freemium model with tiered pricing. After a two-week free trial, the company converts customers to paying $20 per month for a pro offering or $40 per month for a business subscription created for larger teams and organizations. Companies using Cursor included. OpenAI midday confusion, copying, Shopify and Instacart.
Anysphere in 2022 by Michael Truell; Sualeh Asif It was co-founded by Arvid Lunnemark and Aman Sanger when they were students at MIT. I passed last year. OpenAI's acceleratorand raised its seed funding led by the OpenAI Startup Fund.
The company is also a venture company with other investors. For exampleStripe co-founder Patrick Collison; Former GitHub CEO Nat Friedman and Dropbox co-founder Arash Ferdowsi.