Cursor’s $2.3B Financing Reminds Us: Coding Automation Is Still Ultra-Hot
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Coding automation platform Cursor announced today that it has raised $2.3 billion in Series D funding at a $29.3 billion post-money valuation.
That valuation is more than 3x higher than what Cursor parent company Anysphere secured just six months ago, an indication that investors 1 see both lightning growth and enormous potential for more to come.
Cursor has certainly signed on to that vision as well. The San Francisco-headquartered company, founded in 2022, now has a team of more than 300 and touts ambitious plans to extend its footprint. The company also said it now has over $1 billion in annualized revenue.
Other investor favorites
But Cursor is far from the only startup attracting considerable attention and big checks from venture investors lately. Using Crunchbase data, we put together a sample of a dozen companies working on AI-enabled coding and software development tools that raised sizable rounds in the past several quarters.
AI coding startup Cognition is another investor favorite. The San Francisco company, known for its AI software development platform Devin, secured $400 million in a September round led by Founders Fund at a $10.2 billion valuation.
Replit, an agentic platform for app development, also scored big, landing a $250 million Series C this summer. And Lovable, a Swedish startup offering AI-enabled app and website development, pulled in $200 million in a July financing.
Exits too
Coding automation is also an area where acquirers are active.
This includes Cursor. OpenAI reportedly made overtures to acquire the company last year, but a deal did not come to fruition. Cursor parent Anysphere has also been an active buyer, acquiring fellow startups Koala and Supermaven in roughly the past year.
Cognition is also an M&A player, having announced in July that it was acquiring definitive agreement code automation provider Windsurf. Just prior to that, Google hired away Windsurf’s CEO Varun Mohan, co-founder Douglas Chen, and research leaders in a $2.4 billion tie-up.
Given that the most heavily funded companies in the AI coding space are mostly relatively youthful startups, we’ve yet to see activity on the IPO front. But if things keep progressing at the current pace, that might not be far away.
Related Crunchbase query:
Related reading:
Illustration: Dom Guzman
Existing backers Accel, Thrive Capital, Andreessen Horowitz and DST participated in the latest round, along with new investors Coatue, Nvidia and Google.↩
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Cursor’s $2.3B Financing Reminds Us: Coding Automation Is Still Ultra-Hot
Share:
Coding automation platform Cursor announced today that it has raised $2.3 billion in Series D funding at a $29.3 billion post-money valuation.
That valuation is more than 3x higher than what Cursor parent company Anysphere secured just six months ago, an indication that investors 1 see both lightning growth and enormous potential for more to come.
Cursor has certainly signed on to that vision as well. The San Francisco-headquartered company, founded in 2022, now has a team of more than 300 and touts ambitious plans to extend its footprint. The company also said it now has over $1 billion in annualized revenue.
Other investor favorites
But Cursor is far from the only startup attracting considerable attention and big checks from venture investors lately. Using Crunchbase data, we put together a sample of a dozen companies working on AI-enabled coding and software development tools that raised sizable rounds in the past several quarters.
AI coding startup Cognition is another investor favorite. The San Francisco company, known for its AI software development platform Devin, secured $400 million in a September round led by Founders Fund at a $10.2 billion valuation.
Replit, an agentic platform for app development, also scored big, landing a $250 million Series C this summer. And Lovable, a Swedish startup offering AI-enabled app and website development, pulled in $200 million in a July financing.
Exits too
Coding automation is also an area where acquirers are active.
This includes Cursor. OpenAI reportedly made overtures to acquire the company last year, but a deal did not come to fruition. Cursor parent Anysphere has also been an active buyer, acquiring fellow startups Koala and Supermaven in roughly the past year.
Cognition is also an M&A player, having announced in July that it was acquiring definitive agreement code automation provider Windsurf. Just prior to that, Google hired away Windsurf’s CEO Varun Mohan, co-founder Douglas Chen, and research leaders in a $2.4 billion tie-up.
Given that the most heavily funded companies in the AI coding space are mostly relatively youthful startups, we’ve yet to see activity on the IPO front. But if things keep progressing at the current pace, that might not be far away.
Related Crunchbase query:
Related reading:
Illustration: Dom Guzman
Existing backers Accel, Thrive Capital, Andreessen Horowitz and DST participated in the latest round, along with new investors Coatue, Nvidia and Google.↩
Read More
The Week’s 10 Biggest Funding Rounds: AI And Defense Tech Take The Lead