Cursor Seeks $10B Valuation Amid AI Coding Boom: Investment Talks Underway
Investor interest in AI coding assistants is surging, as evidenced by the significant funding developments in the sector. One notable player, Anysphere, the creator of the AI-driven coding assistant Cursor, is currently in discussions with venture capitalists to secure funds at an impressive valuation of nearly $10 billion, according to a report from Bloomberg.
Recent Funding Developments for Anysphere
The upcoming funding round, if finalized, would occur approximately three months after Anysphere successfully raised $100 million at a pre-money valuation of $2.5 billion, as initially reported by TechCrunch. The new financing round is anticipated to be led by returning investor Thrive Capital.
Both Thrive Capital and Anysphere have not yet responded to requests for comments. This new valuation represents a significant increase, as Anysphere’s previous funding round valued the company at 25 times its annual recurring revenue (ARR) of $100 million, reported by The New York Times.
Impressive Growth Metrics
According to The Information, Anysphere’s current ARR may have already increased to $150 million. If the new funding round is successful, it could lead to a valuation of an astonishing 66 times ARR.
- Previous funding: $100 million at a $2.5 billion valuation
- Current ARR: Estimated at $150 million
- Potential new valuation: Nearly $10 billion
High Valuations Across the Sector
Anysphere isn’t alone in attracting substantial investor interest. Another company, Codeium, which is behind the AI coding editor Windsurf, is also in the process of raising capital at a valuation close to $3 billion. As reported by TechCrunch, Kleiner Perkins is leading this funding round, which values Codeium at about 70 times its ARR of $40 million.
The Acceleration of AI in Coding Tools
Investors are noting that AI is evolving most rapidly in the realm of coding tools, surpassing its application in sectors such as sales, law, and healthcare. This trend is reflected in the growing interest from investors in companies like Poolside, which is also developing its own large language model (LLM) tailored for coding tasks. Sources have indicated that Poolside has recently garnered attention from potential investors, although the company has not yet issued a comment.
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