AI coding assistant Cursor has raised another $100 million in just 4 months at a $2.5 billion valuation led by Thrive, sources say.
Anysphere, 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. The round is led by returning investor Thrive Capital, the source said.
This new funding comes just four months after Anysphere raised its contribution $60 million Series A With a valuation of $400 million from Thrive and Andreessen Horrowitz. The A16Z also took part in the final round, but did not drive it this time.
Thrive declined to comment and the company and a16z did not respond to our request for comment.
Last month, TechCrunch reported that investors, including Index Ventures and Benchmark, were in Falling over themselves For the opportunity to support the company. But Anysphere is clearly growing so fast that existing VCs can’t pass up the opportunity to double the bet, even if it takes a staggering 6.5x jump in valuation during the round completed just a few months ago. Interest in the backing of this company, and who would win the deal, has been widely watched by Valley insiders, and has been It has been marked By X account called Arfur Rock.
The market for AI-based programming assistants is crowded with options like Augment, Codeium, Magic, and Poolside, as this is one of the areas where AI has found a strong revenue-generating path. None of these tools are as popular with developers as Cursor, though they are also going after Microsoft’s GitHub Copilot, which Raised the stakes by launching a free version.
However, Anysphere’s revenue rose from $4 million in annual recurring revenue (ARR) in April to $4 million per month in October, sources previously told TechCrunch. This means the company’s annualized revenue in October was $48 million, meaning the latest round valued Anysphere at more than 50 times its revenue. (The eventual deal valuation multiple will likely be slightly lower, if the company’s rapid revenue growth continues.)
Cursor offers developers a free template with tiered pricing. After a two-week free trial, the company converts users into paying customers who pay either $20 for the professional offering or $40 per month for a business subscription designed for larger teams and organizations. Companies using the index Includes OpenAI, Midjourney, Perplexity, Replicate, Shopify, and Instacart.
Anysphere was co-founded in 2022 by Michael Trowell, Sawala Asif, Arvid Lonemark, and Aman Sanger while they were students at MIT. Last year, it passed OpenAI Acceleratorand raised its seed funding led by the OpenAI Startup Fund.
Other investors in the company include Projects Company The new onesStripe co-founder Patrick Collison, former GitHub CEO Nat Friedman, and Dropbox co-founder Arash Ferdowsi.
