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

Anysphere, the developer of Cursor, an AI-powered coding assistant, has raised a $100 million Series B round at a post-funding valuation of $2.6 billion, according to sources with knowledge of the deal. The round is led by return investor Thrive Capital, the person said.

This new funding comes just four months after Anysphere increased its $60 million, Series A at a valuation of $400 million by Thrive and Andreessen Horrowitz. A16Z also participated in the last round, but did not co-lead it this time.

Thrive declined comment and the company and a16z did not respond to our request for comment.

Last month, TechCrunch reported that investors, including Index Ventures and Benchmark, were fall on themselves for a chance to support the business. But apparently Anysphere is growing so fast that existing venture capital couldn't pass up the opportunity to double down on its bet, even though its valuation grew 6.5x during a round that ended just a few months ago. The interest in backing this company and who would win the deal became widely observed by Valley insiders and was widely observed. reported by an X account called Arfur Rock.

The AI-powered coding assistant market is full of options like Augment, Codeium, Magic, and Poolside, as this is one of the areas where AI has found a strong, revenue-generating path . None of these tools are as popular with developers as Cursor, although they are also chasing Microsoft's GitHub Copilot, which was just launched. upped the ante by launching a free version.

Still, Anysphere's revenue fell from $4 million in annualized recurring revenue (ARR) in April to $4 million per month in October, sources previously told TechCrunch. This means that the company's ARR in October was $48 million, implying that the last round valued Anysphere at over 50 times revenue. (The transaction's final valuation multiple, however, would likely be slightly lower if the company's rapid revenue growth continues.)

Cursor offers developers a freemium model with tiered pricing. After a two-week free trial, the company converts users into paying customers who pay either $20 for a professional plan or $40 per month for a professional subscription designed for large teams and organizations. Companies that use Cursor include OpenAI, Midjourney, Perplexity, Replicate, Shopify and Instacart.

Anysphere was co-founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger while they were students at MIT. Last year it happened The OpenAI acceleratorand raised its seed funding led by OpenAI Startup Fund.

Other investors in the company include a venture capital firm NeoPatrick Collison, co-founder of Stripe, Nat Friedman, former CEO of GitHub, and Arash Ferdowsi, co-founder of Dropbox.