Anysphere's Cursor AI Coding Tool Sparks Investor Frenzy, Nearing $10 Billion Valuation
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On Sat, 8 Mar, 8:03 AM UTC
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[1]
AI startup Anysphere in negotiation for near $10 billion valuation - Bloomberg News By Investing.com
Investing.com -- Anysphere Inc., the startup responsible for the creation of the artificial intelligence-powered code editor, Cursor, is reportedly in negotiation to raise hundreds of millions from investors at a valuation approaching $10 billion, as reported by Bloomberg, citing sources who wished to remain anonymous. The funding round is anticipated to be led by Thrive Capital. However, the discussions are not yet finalized and the specifics may still shift. Anysphere's Cursor has proven to be a successful coding tool, with the startup exceeding $100 million in annual recurring revenue within a year. This achievement has placed Anysphere among the fastest-growing startups ever. The company's valuation was previously set at $2.5 billion during a funding round announced in January.
[2]
Cursor in talks to raise at a $10B valuation as AI coding sector booms | TechCrunch
Investor interest in AI-coding assistants is exploding. Anysphere, the developer of AI-powered coding assistant Cursor, is in talks with venture capitalists to raise capital at a valuation of nearly $10 billion, Bloomberg reported. The round, if it transpires, would come about three months after Anysphere completed its previous fundraise of $100 million at a pre-money valuation of $2.5 billion, as TechCrunch was first to report. The new round is expected to be led by returning investor Thrive Capital. Thrive Capital and Anysphere didn't immediately respond to a request for comment. While Anysphere's previous round valued the company at 25 times its $100 million ARR (per the New York Times), investors seem to be willing to value fast-growing companies at even higher multiples now. Anysphere's current annualized recurring revenue (ARR) may have already climbed to $150 million, the Information reported, which means the new deal, should it happen would be a whopping 66 times ARR. Anysphere isn't the only company receiving such a high valuation from investors. Codeium, a company behind AI coding editor Windsurf, is raising capital at a valuation of nearly $3 billion, TechCrunch reported last month. Kleiner Perkins, which is leading the round into Codeium, valued the company at about 70 times ARR of about $40 million. AI is adapting fastest in coding tools, outpacing its use in sales, law, healthcare, and other sectors, according to investors. In recent weeks, investors have been approaching Poolside, another AI-powered coding company that is also developing its own LLM, sources tell TechCrunch and the Information. Poolside didn't immediately respond to a request for comment.
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Anysphere, the startup behind the AI-powered code editor Cursor, is in talks to raise hundreds of millions at a valuation approaching $10 billion, highlighting the booming AI coding sector and investor enthusiasm.
Anysphere's Meteoric Rise in AI-Powered Coding
Anysphere Inc., the startup behind the AI-powered code editor Cursor, is reportedly in negotiations to raise hundreds of millions of dollars from investors at a valuation approaching $10 billion. This potential funding round, expected to be led by Thrive Capital, comes just months after the company's previous valuation of $2.5 billion in January 12.
Rapid Growth and Revenue Milestones
Anysphere's success has been nothing short of remarkable. The company has achieved over $100 million in annual recurring revenue (ARR) within a year, placing it among the fastest-growing startups ever 1. Recent reports suggest that Anysphere's ARR may have already climbed to $150 million 2, underlining its explosive growth trajectory.
Investor Enthusiasm and Valuation Metrics
The potential new valuation represents a significant leap from Anysphere's previous funding round. If the deal goes through at the reported valuation, it would value the company at approximately 66 times its ARR, showcasing the immense investor confidence in AI-powered coding tools 2.
AI Coding Sector Boom
Anysphere's success is part of a larger trend in the AI coding sector. Investors are showing unprecedented interest in AI-coding assistants, with several companies receiving high valuations:
- Codeium, the company behind AI coding editor Windsurf, is reportedly raising capital at a valuation of nearly $3 billion, about 70 times its ARR of $40 million 2.
- Poolside, another AI-powered coding company developing its own Large Language Model (LLM), has been attracting significant investor attention 2.
AI Adoption in Coding Tools
The rapid growth and high valuations in the AI coding sector highlight a broader trend. AI is adapting fastest in coding tools, outpacing its adoption in other sectors such as sales, law, and healthcare 2. This trend underscores the transformative potential of AI in software development and the tech industry at large.
Market Implications and Future Outlook
The high valuation multiples and intense investor interest in AI coding tools signal a shift in the tech investment landscape. As companies like Anysphere continue to demonstrate rapid growth and market adoption, they are reshaping expectations for startup valuations and growth trajectories in the AI sector.
While the negotiations for Anysphere's funding round are still ongoing and details may change, the reported figures reflect the bullish sentiment surrounding AI-powered developer tools. As the sector continues to evolve, it will be crucial to monitor how these high valuations translate into long-term market performance and technological advancements in the field of AI-assisted coding.
Anysphere Secures $105 Million in Funding, Valuation Soars to $2.5 Billion
Anysphere, the startup behind AI coding assistant Cursor, raises $105 million in a Series B round led by Thrive Capital and Andreessen Horowitz, reaching a $2.5 billion valuation. The funding highlights the growing interest in AI-powered coding tools and the competitive landscape in this sector.
2 Sources
2 Sources
AI Coding Assistants Magic and Codeium Secure Massive Funding, Reshaping the Developer Tools Landscape
AI-powered coding assistant startups Magic and Codeium have raised $320 million and $150 million respectively, signaling a major shift in the developer tools industry. These investments highlight the growing importance of AI in software development.
4 Sources
4 Sources
Cursor AI Code Editor's 0.43 Update Introduces Advanced AI Agents, Challenging Competitors
Cursor, an AI-powered code editor, releases a significant update with new features including AI agents, improved UI, and advanced search capabilities, intensifying competition in the AI coding tool market.
2 Sources
2 Sources
AI Coding Startup Poolside Secures $500M in Series B Funding, Valuation Soars to $3 Billion
Poolside, an AI-powered coding startup, has raised $500 million in a Series B funding round led by Bain Capital Ventures. The investment brings the company's total funding to $626 million and values it at $3 billion, despite not having launched a product yet.
5 Sources
5 Sources
AI Startup Poolside Reaches $3 Billion Valuation, Challenging GitHub in Software Development
French AI startup Poolside has achieved a $3 billion valuation, positioning itself as a major competitor to Microsoft's GitHub. The company's AI-powered software development tools are attracting significant investor interest and reshaping the coding landscape.
3 Sources
3 Sources
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