Anysphere Secures $60M Series A Funding at $400M Valuation, Competing with GitHub Copilot, Backed by a16z and Thrive, Sources Reveal

Anysphere Secures $60 Million Series A Round to Propel AI Coding Assistant Cursor

Anysphere, an innovative startup established two years ago, has successfully raised over $60 million in a Series A funding round, achieving a post-money valuation of $400 million. This funding comes from key investors including Andreessen Horowitz and Thrive Capital, alongside participation from Patrick Collison, the co-founder and CEO of Stripe.

Despite reaching out for comments, representatives from Anysphere, Andreessen Horowitz, and Collison have not provided responses. Thrive Capital opted not to comment as well.

Co-founded by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger during their time at MIT, Anysphere benefits from a strong academic pedigree. Notably, Truell and Sanger were participants in the Neo Scholars program, a distinguished mentorship initiative for undergraduates in technical disciplines. Neo, which is well-known for its accelerator and venture fund, led Anysphere’s pre-seed investment. Last year, the company secured an $11 million seed round, primarily funded by OpenAI Startup Fund, with additional contributions from notable figures such as former GitHub CEO Nat Friedman and Dropbox co-founder Arash Ferdowsi, among other angel investors.

Anysphere operates in a rapidly evolving market of AI coding assistants. This competitive landscape includes peers like Cognition, Poolside, Magic, and Augment, all striving to enhance coding efficiency.

The rising interest in AI coding solutions comes as no surprise. At a recent earnings call, Microsoft CEO Satya Nadella highlighted that GitHub Copilot—an AI-driven tool designed to expedite coding—has surpassed GitHub’s revenue figures at the time of its acquisition, which was estimated at approximately $300 million in 2018. Analysts suggest that around 3 million developers globally are paying Microsoft $100 annually for GitHub’s subscription to boost their productivity. A venture capitalist, with investments in similar startups, noted, “With such high demand, the competition is bound to intensify.”

Anysphere's growth in revenue and user engagement has been substantial, according to sources familiar with the company. In July, Business Insider indicated that Anysphere was actively raising funds and targeting a $400 million valuation.