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- Anysphere, creator of AI coding assistant Cursor, raises $60 million in Series A funding, reaching a $400 million valuation.
- The funding round was co-led by Andreessen Horowitz and Thrive Capital, with participation from Stripe’s CEO Patrick Collison.
Anysphere, a startup that created the AI-powered coding assistant Cursor, has raised over $60 million in a Series A funding round, giving the company a post-money valuation of $400 million, according to TechCrunch.
The round was co-led by Andreessen Horowitz and Thrive Capital, with participation from Stripe’s co-founder and CEO, Patrick Collison.
The company was co-founded by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger while they were at MIT. Truell and Sanger later joined Neo Scholars, a well-known mentorship program for undergraduates in technical fields. Neo, which also operates an accelerator and venture fund, led Anysphere’s pre-seed investment.
Since its start in 2022, the startup has experienced significant growth. Last year, it secured an $11 million seed round led by the OpenAI Startup Fund, with support from former GitHub CEO Nat Friedman, Dropbox co-founder Arash Ferdowsi, and other angel investors.
Furthermore, the Anysphere team views Microsoft as their main competitor and recognizes that the tech giant has a significant distribution edge. However, they argue that because Visual Studio Code serves a broad and diverse user base, Microsoft can only implement major changes or updates quickly with the risk of losing some of its users.
Additionally, Truell stated that the potential in the AI coding space is vast, and simply replicating existing technology with strong sales won’t suffice. Continuous innovation is essential. With over 26 million developers worldwide, there’s a significant market for those seeking a truly AI-native experience.
