Anysphere, the developer of AI-powered coding assistant Cursor, raised $100 million Series B at a post-money valuation of $2.6 billion, in accordance with sources with data of the deal. The spherical is being led by returning investor Thrive Capital, the particular person mentioned.
This new funding comes simply 4 months after Anysphere raised its $60 million Series A at a $400 million valuation from Thrive and Andreessen Horrowitz. A16Z additionally participated within the newest spherical, however didn’t co-lead it this time.
Thrive declined remark and the corporate and a16z haven’t responded to our request for remark.
Last month, TechCrunch reported that buyers, together with Index Ventures and Benchmark, have 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 wager, even when it took a staggering 6.5 instances leap in valuation over a spherical that was accomplished only a few 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 referred to as Arfur Rock.
The marketplace for AI-powered coding assistants is crowded with choices akin to Augment, Codeium, Magic, and Poolside, as it’s certainly one of areas the place AI has discovered a strong, revenue-generating lane. None of those instruments are as widespread 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 $four million annualized recurring income (ARR) in April to $four million a month in October, sources beforehand informed TechCrunch. That means the corporate’s ARR in October was $48 million, implying that the most recent spherical valued Anysphere at over 50 instances its income. (The closing deal valuation a number of was probably barely decrease, nonetheless, if the corporate’s quick income development continued.)
Cursor gives builders a freemium mannequin with tiered pricing. After a two-week free trial, the corporate converts customers to paying prospects who pay both $20 for a pro-offering 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 have been college students at MIT. Last 12 months, it went via OpenAI’s accelerator, and raised its seed funding led by OpenAI Startup Fund.
Other buyers within the firm embrace enterprise agency Neo, Stripe co-founder Patrick Collison, former GitHub CEO Nat Friedman and Dropbox co-founder Arash Ferdowsi.
