According to sources, Anysphere's AI programming assistant Cursor has successfully completed a $100 million Series B funding round, bringing its valuation to $2.6 billion. This round was led by existing investor Thrive Capital, although Andreessen Horowitz (a16z) also participated, they did not co-lead the round.
The arrival of this funding is noteworthy, as it comes just four months after Anysphere completed a $60 million Series A funding round, with a valuation of only $400 million. In just four months, the company's valuation has skyrocketed by 6.5 times. It is reported that Anysphere's rapid growth has led many investors to express a desire to invest again, particularly some venture capital firms such as Index Ventures and Benchmark, which have shown great interest in the company's development.
The market for AI programming assistants is highly competitive, with tools like Augment, Codeium, Magic, and Poolside emerging one after another. However, among developers, Cursor is notably more popular than its competitors. Additionally, GitHub Copilot, a subsidiary of Microsoft, recently launched a free version, further intensifying market competition.
Despite the increased competition, Anysphere's performance is rapidly growing. From an annual recurring revenue (ARR) of $4 million in April to $4 million per month in October, the company's annualized revenue has reached $48 million in just a few months. This also means that the valuation from the latest funding round is more than 50 times its annual revenue.
Cursor adopts a freemium model, allowing users to enjoy a two-week free trial, after which they can choose between a $20 monthly professional version or a $40 monthly enterprise version suitable for large teams and organizations. Currently, companies such as OpenAI, Midjourney, Perplexity, Replicate, Shopify, and Instacart are using Cursor.
Anysphere was founded in 2022, with founders including MIT students Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger. Last year, the company participated in OpenAI's accelerator program and received seed investment from the OpenAI Startup Fund. Other investors include venture capital firms Neo, Stripe co-founder Patrick Collison, former GitHub CEO Nat Friedman, and Dropbox co-founder Arash Ferdowsi.
Highlights:
🌟 Cursor successfully raised $100 million, with a valuation of $2.6 billion!
🚀 In just four months, the company's valuation surged 6.5 times, with investors showing high enthusiasm.
💰 The company's annual revenue rapidly grew from $4 million to $48 million, showcasing impressive performance.