Manus Raises $500M in First Funding Round After China Blocks Meta's $2B Acquisition
8 Sources
[1]
China's Manus raises over $500M in first funding round since split with Meta
Chinese AI lab Manus' parent company, Butterfly Effect, said on Thursday in a WeChat post that it has raised more than $500 million, the company's first funding round since Meta was forced to call off its $2 billion acquisition of the startup. Boyu Capital and IDG Capital led the funding round,
[2]
AI startup Manus raises $500 million in first funding round since Meta breakup
* Manus has raised more than $500 million in its first funding round since U.S.-based Meta Platforms was forced to reverse its acquisition. * Bloomberg reported last month that Manus was set to double its valuation in this financing round to $4 billion, what would make it the country's most
[3]
Manus raises more than $500M in first funding round since Meta exit
Boyu Capital and IDG Capital led the round for the AI agent startup after China blocked Meta's $2B takeover. Butterfly Effect, the company behind AI agent startup Manus, said that it has closed a funding round of more than $500 million. This would be the first raise since Meta's $2 billion-plus
[4]
Manus raises $500M after China blocked Meta acquisition
Manus announced earlier this month that operations had fully restarted on an independent footing following the Meta separation, with its founding team committed to advancing AI agent technology for a global audience. The funding round comes after a prolonged unwinding process. As Manus announced
[5]
AI startup Manus raises $500m after Meta acquisition blocked by China
Beijing (AFP) - AI startup Manus, whose acquisition by Meta was blocked by the Chinese government, said Thursday it had completed a funding round that raised more than $500 million. It comes just weeks after the Chinese-developed, Singapore-based company said it had resumed independent operations
[6]
AI start-up Manus confirms fundraising of $500m post Meta's failed acquisition
Eurasia Group's Dan Wang noted that the fundraising is evidence of investors' continued interest in backing Manus, despite the fall out from the Meta incident. It has been confirmed that Manus has raised funds of more than $500m, not long after Meta's proposed $2bn-plus acquisition of the AI
[7]
Manus funding: Manus raises more than $500 million after Meta exit
Manus, the AI startup formerly under the umbrella of Meta, has achieved a remarkable funding milestone, securing over $500 million in its latest financing round. This pivotal moment occurred after the company unhinged from Meta due to a recent reversal of acquisition. The round saw support from
[8]
Manus Raises $500 Million After China Blocks Meta's Acquisition | PYMNTS.com
Butterfly Effect announced the round in a post on Chinese social media platform Weixin. According to a Google translation of the post, as well as multiple media reports, the round was led by Boyu Capital and IDG Capital, with follow-on investment from Tencent, HSG and ZhenFund. The company said in
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Chinese AI agent startup Manus secured over $500 million in its first funding round since China blocked Meta's $2 billion acquisition. Led by Boyu Capital and IDG Capital, the raise values Manus at approximately $4 billion—double what Meta agreed to pay—signaling strong investor confidence despite regulatory intervention that forced the deal's unwinding.
Manus Secures Major Funding After Forced Meta Split
Manus has raised more than $500 million in its first funding round since China blocked Meta's $2 billion acquisition of the AI startup
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. Boyu Capital and IDG Capital led the round, with existing shareholders Tencent, HSG (formerly Sequoia China), and ZhenFund participating3
. While Butterfly Effect, Manus' parent company, did not disclose the valuation, Bloomberg reported last month that the AI agent startup was negotiating to raise $500 million at a $4 billion valuation—double what Meta had agreed to pay2
. This makes Manus potentially China's most valuable AI agent maker and demonstrates that investor appetite remains strong despite the regulatory turbulence.
Source: Silicon Republic
China Blocked Meta Acquisition Amid AI Talent Concerns
The Meta acquisition unraveled after Chinese authorities intervened in April, ordering the parties to reverse the deal
1
. China's National Development and Reform Commission cited foreign investment rules and issued a directive prohibiting foreign investment in the Manus project4
. The decision reflected intensifying worries in China over losing AI talent and researchers to the West1
. At the time of the blocked deal, Manus was pulling in annual recurring revenue of over $100 million1
. Beijing also reportedly restricted overseas travel by two of Manus's co-founders during the regulatory scrutiny period5
.Independent Operations Resume with New Product Launches
Manus announced earlier this month that it had resumed independent operations after completing the separation from Meta
4
. The split required the company to delete some user data created on or after December 29, 2025, when Meta originally acquired it3
. Despite the setback, Manus has launched Manus 2.0, built on a new in-house execution system called Cascade2
. The company also introduced Cue, a standalone personal-agent app that gives AI agents their own email addresses, phone numbers, digital wallets, and computers1
. This allows agents to communicate, handle tasks across services, and make payments within user-defined limits.
Source: TechCrunch
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General-Purpose AI Agents Drive Market Interest
Manus builds general-purpose AI agents similar to what companies like Cursor, Lovable, and Replit offer
1
. The platform offers chatbot and vibe-coding tools that let users build apps and websites, create designs and presentations, generate video, and perform various automated tasks1
. AI agent technology is currently a hot sector in global tech, with labs racing to release personal assistants5
. Dan Wang, China director at Eurasia Group, noted that "the fundraising shows that the short-term fallout of the Meta case has been contained and investors are willing to back Manus as an independent company," while also highlighting renewed confidence in the commercial potential of AI agents2
.Strategic Moves Signal Global Ambitions
Manus relocated its staff to Singapore in mid-2025 before announcing the Meta deal that December
1
. The company is also reported to be considering going public through a Hong Kong IPO1
. Manus has stated it will continue hiring both at home and abroad, and is forming teams to develop products for the domestic market5
. The two co-founders who were previously reportedly barred from leaving China were spotted at Manus's recent product launch event in Singapore last month5
, suggesting some normalization of their situation. Once seen as a blueprint for Chinese startups seeking global reach, Manus has become a cautionary tale for companies squeezed between regulators in Beijing and Washington2
. Watch how Manus navigates this geopolitical tightrope while scaling AI agent technology globally.
Source: PYMNTS
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