Anysphere, the creator of the AI-powered coding assistant Cursor, has raised $100 million in a Series B funding round, bringing its post-money valuation to $2.6 billion, according to sources familiar with the deal.
The round was led by Thrive Capital, a returning investor, with additional participation from Andreessen Horowitz, which had co-led Anysphere’s $60 million Series A just four months prior, when the company was valued at $400 million.
Neither Thrive Capital nor a16z has commented on the new funding, which reflects a staggering 6.5x leap in valuation over a short period.
Last month, TechCrunch reported intense investor interest from firms like Index Ventures and Benchmark, but Anysphere’s rapid growth prompted existing backers to increase their stake.
The greatest glory in living lies not in never falling, but in rising every time we fall.
Ralph Waldo Emerson
This dramatic rise in valuation and the competition among investors has drawn attention from Silicon Valley insiders, including discussions on X (formerly Twitter) by the account Arfur Rock.
Despite a crowded market featuring competitors like Augment, Codeium, Magic, and Poolside—and competition from Microsoft’s GitHub Copilot, which recently launched a free version—Cursor has emerged as a standout favorite among developers.
Anysphere’s ARR has surged from $4 million in April to $48 million by October, positioning the company at a valuation of over 50 times its revenue, though the exact multiple may be slightly lower given its ongoing growth.
Cursor operates on a freemium model, converting users to paid plans after a two-week trial. The pro plan costs $20 per month, while the business plan, tailored for larger teams, is priced at $40 per month.
Its customers include notable companies like OpenAI, Midjourney, Perplexity, Shopify, Instacart, and Replicate, highlighting its appeal across various sectors.
Founded in 2022 by MIT students Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger, Anysphere gained early support from OpenAI’s accelerator program and secured seed funding from the OpenAI Startup Fund.
Other notable investors include venture firm Neo, Stripe co-founder Patrick Collison, former GitHub CEO Nat Friedman, and Dropbox co-founder Arash Ferdowsi.
As the market for AI-powered coding assistants continues to expand, Anysphere’s rapid growth and strong investor backing signal its potential to dominate the space, even amidst fierce competition.