According to TechCrunch on December 22, people familiar with the matter revealed that artificial intelligence (AI) programming assistant Cursor Anysphere, the developer of the $100 million Series BFinancingpost-investment evaluationThe value of this round is up to $2.6 billion (currently about RMB 18.974 billion). The current roundThe financing was led by longtime shareholder Thrive Capital.
It's worth noting that Anysphere closed a $60 million Series A round led by Andreessen Horowitz (a16z) with participation from Thrive Capital just four months ago at a valuation of $400 million. a16z also participated in the round.
Last month TechCrunch reported that a number of investment firms, including Index Ventures and Benchmark, were competing for the opportunity to invest in Anysphere. But it's clear that Anysphere's rapid growth has made existing investors reluctant to miss another opportunity to invest.Even if it means a 6.5x jump in valuation in just a few months... Concerns surrounding the company and its financing have become a hot topic among Silicon Valley insiders.
The market for AI-powered programming assistants is highly competitive, with a plethora of products such as Augment, Codeium, Magic, and Poolside emerging, and AI has found a reliable, revenue-generating direction for applications in this space. While these tools are also playing catch-up with Microsoft's GitHub Copilot (which recently launched a free version, further intensifying the competition), none of them can match Cursor in terms of popularity among developers.
This comes after a source revealed that Anysphere's annualized recurring revenue (ARR) grew from $4 million in April of this year to $4 million per month in October.This means that the company's ARR for the month of October reached $48 millionIt also means that the round valued Anysphere at more than 50 times its revenue.
Cursor offers a freemium model for developers that includes tiered pricing. At the end of the two-week free trial, users can choose to pay to become a customer, subscribing to either the Pro version ($20 per month) or a commercial subscription ($40 per month) for larger teams and organizations, with companies including OpenAI, Midjourney, Perplexity, Replicate, Shopify and Instacart using Cursor. Companies including OpenAI, Midjourney, Perplexity, Replicate, Shopify, and Instacart use Cursor.
Anysphere was co-founded by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger in 2022 while attending MIT. Last year, the company participated in OpenAI's gas pedal program and received a seed round led by the OpenAI Startup Fund.
Other investors in the company include venture capital firm Neo, Stripe co-founder Patrick Collison, former GitHub CEO Nat Friedman and Dropbox co-founder Arash Ferdowsi.