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Exclusive: In just 4 months AI coding assistant Cursor raised another $100M at a $2.5B valuation led by Thrive, sources say

Dec 19, 2024 - techcrunch.com
Anysphere, the developer of the AI-powered coding assistant Cursor, has raised $100 million in a Series B funding round, reaching a post-money valuation of $2.6 billion. The round was led by returning investor Thrive Capital, with participation from Andreessen Horowitz (a16z), although a16z did not co-lead this time. This funding comes just four months after Anysphere's $60 million Series A round, which valued the company at $400 million. The rapid increase in valuation, driven by significant growth in revenue from $4 million annualized recurring revenue (ARR) in April to $48 million ARR in October, has attracted considerable attention from investors, including Index Ventures and Benchmark.

Anysphere's Cursor, which offers a freemium model with tiered pricing, is gaining popularity among developers and competes in a crowded market against tools like Augment, Codeium, Magic, and Poolside, as well as Microsoft's GitHub Copilot. The company was co-founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger while they were students at MIT. It went through OpenAI’s accelerator and received seed funding from the OpenAI Startup Fund. Other notable investors include Neo, Stripe co-founder Patrick Collison, former GitHub CEO Nat Friedman, and Dropbox co-founder Arash Ferdowsi.

Key takeaways:

  • Anysphere raised $100 million in a Series B round at a $2.6 billion valuation, led by Thrive Capital, with participation from Andreessen Horowitz.
  • The company's valuation increased 6.5 times since its $60 million Series A round four months ago, reflecting rapid growth and investor interest.
  • Anysphere's AI-powered coding assistant, Cursor, has seen its revenue grow from $4 million annualized recurring revenue in April to $48 million ARR in October.
  • Cursor offers a freemium model with tiered pricing and is used by companies like OpenAI, Midjourney, and Shopify.
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