Anysphere, the company behind Cursor, the AI-enabled coding platform, has raised a $900 million investment, led by Thrive Capital, Andreessen Horowitz (a16z), and Accel Ventures, the Financial Times reported on Monday.
This is said to more than triple the company’s valuation to $9 billion.
In January this year, the company also raised $105 million in Series B funding, led by Thrive Capital, a16z, and other existing investors. After the funding round, the company was valued at $2.5 billion.
In September 2023, the company raised an initial $8 million in funding from OpenAI’s startup fund. In August 2024, Anysphere raised $60 million in Series A from a16z, Thrive Capital, and other investors.
According to research from Sacra, the AI-enabled coding platform reached $100 million in annual recurring revenue (ARR) within 21 months of its inception. It took Cursor only 12 months to reach this figure from $1 million ARR, and was then deemed as the fastest-growing SaaS company of all time. It only took two more months to reach $200 million ARR.
The company also recently crossed $300 million in ARR, just two years after launch.
Anysphere was founded in 2022 by MIT students and friends Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger. Their vision was to build an integrated development environment (IDE) that was ‘AI native’, and they launched Cursor in January 2023 on top of Microsoft’s Visual Studio Code.
Cursor positions itself as an extension of human engineers rather than a replacement. The company asserts, “Using a combination of AI and human ingenuity, they [the hybrid engineers] will out-smart and out-engineer the best pure-AI system.” This strategy appealed to users, who favoured Cursor’s workflow over that of Devin, an end-to-end autonomous software development tool.
Having said that, Cursor competes with several other platforms that offer similar functionalities, contributing to a phenomenon called ‘vibe coding’. Tools like Windsurf from Codeium, Bolt.new, Lovable, Vercel’s v0, and many more tools directly compete with Cursor.
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