Anysphere, developer of AI-based coding assistant Cursor, has raised a $100 million Series B at a post-money valuation of $2.6 billion, according to people with knowledge of the deal. The round is being led by returning investor Thrive Capital, the people said.
This new funding comes just four months after Anysphere raised a $60 million Series A from Thrive and Andreessen Horrowitz at a $400 million valuation. A16Z also participated in the latest round, but did not tie for the lead this time.
Thrive declined to comment, and neither the company nor a16z responded to our requests for comment.
Last month, TechCrunch reported that investors including Index Ventures and Benchmark were pushing themselves to find opportunities to back the company. But clearly Anysphere is growing so fast that existing VCs couldn’t pass up the opportunity to double down on their bets, even though the valuation has jumped 6.5x compared to a round completed just a few months ago. The interest in backing the company and who might get the deal done was widely observed by Valley insiders and was flagged by an X account called Arfur Rock.
The AI-based coding assistant market is crowded with options like Augment, Codeium, Magic, and Poolside, as this is one area where AI has found a solid monetization path. None of these tools are as popular with developers as Cursor, but it’s also going after Microsoft’s GitHub Copilot, which has upped the stakes by launching a free version.
Nonetheless, Anysphere’s revenue grew 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 ARR in October was $48 million, meaning Anysphere was valued at more than 50 times its revenue in the latest round. (However, if the company’s rapid revenue growth continues, the final transaction valuation multiple will likely be slightly lower.)
Cursor offers developers a freemium model with tiered pricing. After a two-week free trial, the company converts users into paid customers who pay $20 per month for the pro offering or $40 per month for a business subscription designed for large teams and organizations. Companies using Cursor include OpenAI, Midjourney, Perplexity, Replicate, Shopify, and Instacart.
Anysphere was co-founded in 2022 by former MIT students Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger. Last year, it attracted seed funding led by the Open AI Startup Fund through the Open AI Accelerator.
Other investors in the company include venture firm Neo, Stripe co-founder Patrick Collison, former GitHub CEO Nat Friedman, and Dropbox co-founder Arash Ferdowsi.
