There isn’t a scarcity of AI-powered coding help startups. They embrace Augment, Codeium, Magic, and Poolside.
However, Cursor has turn into one of the most well-liked. Its developer, Anysphere, has seen its income develop from $4 million annualized recurring income (ARR) in April to $4 million a month as of final month, based on a particular person with direct information of the corporate’s financials. The firm is experiencing sooner person adoption and development in comparison with different coding assistant suppliers, one other particular person mentioned.
Such quick development has VCs flocking to it. Anysphere has acquired unsolicited presents valuing the corporate at as a lot as $2.5 billion from Benchmark, Index Ventures, and former traders Andreessen Horowitz and Thrive, amongst others, the particular person mentioned.
Index Ventures declined to remark. Anysphere, Benchmark, Andreessen Horowitz, and Thrive didn’t reply to requests for remark.
Interest in the corporate has exploded so quick that final week, the unsolicited presents began at a $1.5 billion valuation, however have already risen to $2.5 billion, the particular person with direct information of the corporate mentioned. Sources additionally informed the Information that traders are keen to cost the corporate at $2.5 billion.
This compares to the $400 million valuation of Anysphere from simply 4 months in the past, when it raised a $60 million Series A led by Andreessen Horowitz and Thrive. Patrick Collison, Stripe co-founder, additionally joined the spherical.
The firm was co-founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark and Aman Sanger whereas they had been college students at MIT. Last 12 months, Anysphere graduated from OpenAI’s accelerator program and have become its most outstanding graduate. The firm then raised an $8 million seed spherical led by OpenAI’s Startup Fund, with participation from former GitHub CEO Nat Friedman, and Dropbox co-founder Arash Ferdowsi.
Most engineers are already utilizing coding assistants like Cursor, and a few VCs anticipate that these instruments will quickly permit startups to rent fewer software program builders.
