Anysphere, the developer of AI-powered coding assistant Cursor, raised $100 million Series B at a post-money valuation of $2.6 billion, in keeping with sources with information of the deal. The spherical is being led by returning investor Thrive Capital, the particular person stated.
This new funding comes simply 4 months after Anysphere raised its $60 million Series A at a $400 million valuation from Thrive and Andreessen Horowitz—a16z additionally participated within the newest spherical, however didn’t co-lead it this time.
Thrive declined to remark and the corporate and a16z haven’t responded to our request for remark.
Last month, TechCrunch reported that traders, together with Index Ventures and Benchmark, had been falling over themselves for an opportunity to again the corporate. But apparently, Anysphere is rising so quick that the present VC couldn’t cross up the chance to double down on the guess, even when it took a staggering 6.5 instances leap in valuation over a spherical that was accomplished just some months in the past. The curiosity in backing this firm, and who would win the deal, has change into broadly watched by Valley insiders and was flagged by an X account known as Arfur Rock.
The marketplace for AI-powered coding assistants is crowded with choices equivalent to Augment, Codeium, Magic, and Poolside, because it is without doubt one of the areas the place AI has discovered a stable, revenue-generating lane. None of those instruments are as standard with builders as Cursor, although they’re additionally chasing Microsoft’s GitHub Copilot, which simply raised the stakes by launching a free model.
Still, Anysphere’s income has grown from $4 million annualized recurring income (ARR) in April to $4 million a month in October, sources beforehand informed TechCrunch. That means the corporate’s ARR in October was $48 million, implying that the newest spherical valued Anysphere at over 50 instances its income. (The remaining deal valuation a number of was possible barely decrease, nevertheless, if the corporate’s quick income progress continued.)
Cursor gives builders a freemium mannequin with tiered pricing. After a two-week free trial, the corporate converts customers to paying clients who pay both $20 for a professional providing or $40 a month for a enterprise subscription designed for bigger groups and organizations. Companies that use Cursor embrace OpenAI, Midjourney, Perplexity, Replicate, Shopify, and Instacart.
Anysphere was co-founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger whereas they had been college students at MIT. Last yr, it went via OpenAI’s accelerator and raised its seed funding led by OpenAI Startup Fund.
Other traders within the firm embrace enterprise agency Neo, Stripe co-founder Patrick Collison, former GitHub CEO Nat Friedman, and Dropbox co-founder Arash Ferdowsi.
