Anysphere's AI programming assistant Cursor recently completed a $100 million Series B round of financing, with its valuation soaring to $2.6 billion. It was only $400 million from its Series A round four months ago, with a valuation increase of 6.5 times, demonstrating an astonishing development speed. . This round of financing was led by Thrive Capital, with a16z also participating. Cursor stands out in the highly competitive AI programming assistant market. Its rapidly growing revenue and user reputation have attracted the attention of many investors and confirmed its strong market potential and technical strength. This article will provide an in-depth analysis of Cursor’s success factors and future development.
According to people familiar with the matter, Cursor, an AI programming assistant developed by Anysphere, successfully completed a US$100 million Series B round of financing, and its valuation after this round of financing reached US$2.6 billion. This round of financing was led by old investor Thrive Capital. Although Andreessen Horowitz (a16z) also participated in this round, it did not co-lead.
The arrival of this funding is eye-catching, because in just four months since Anysphere completed a $60 million Series A round of financing at a valuation of only $400 million, the company has achieved a valuation of $6.5 twice the leap. It is understood that the growth rate of Anysphere has caused investors to express their hope to invest again. In particular, some venture capital companies, such as Index Ventures and Benchmark, have shown great interest in the company's development.
The market competition for AI programming assistants is quite fierce, with tools such as Augment, Codeium, Magic, and Poolside emerging one after another. However, among developers, Cursor is significantly more popular than other competitors. In addition, Microsoft's GitHub C opilot has recently launched a free version, further increasing the intensity of market competition.
Despite increased competition, Anysphere's performance is growing rapidly. From $4 million in annual recurring revenue (ARR) in April this year to $4 million per month in October, the company's annualized revenue hit $48 million in just a few months. This also means that the latest round of financing is valued at more than 50 times its annual revenue.
Cursor has a freemium model, where users can enjoy a two-week free trial, followed by a $20-per-month Professional version or a $40-per-month Enterprise version suitable for larger teams and organizations. Cursor is currently used by companies such as OpenAI, Midjourney, Perplexity, Replicate, Shopify and Instacart.
Anysphere was founded in 2022 by 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 Venture Fund. In addition, other investors include venture capital firm Neo, Stripe co-founder Patrick Collison, former GitHub CEO Nat Friedman and Dropbox co-founder Arash Ferdowsi.
Highlight:
Cursor successfully raised US$100 million and was valued at US$2.6 billion!
In just four months, the company's valuation soared 6.5 times, and investors were enthusiastic.
The company's annual revenue has grown rapidly from 4 million to 48 million US dollars, and its performance is outstanding.
Cursor’s successful financing and rapid growth not only demonstrate the huge potential of the AI programming assistant market, but also prove the excellent execution and innovation capabilities of the Anysphere team. In the future, it is worth looking forward to whether Cursor can continue to maintain rapid growth and further consolidate its market position.