Benchmark, Index, others are in a wild unsolicited bidding war over Anysphere, maker of Cursor
There isn’t a shortage of AI-powered coding assistance startups. They include Augment, Codeium, Magic, and Poolside. However, Cursor has become one of the most popular. Its developer, Anysphere, has seen its revenue grow from $4 million annualized recurring revenue (ARR) in April to $4 million a month as of last month, according to a person with direct knowledge of the company’s financials. The company is experiencing faster user adoption and growth compared to other coding assistant providers, another person said. Such fast growth has VCs flocking to it. Anysphere has received unsolicited offers valuing the company at as much as $2.5 billion from Benchmark, Index Ventures, and previous investors Andreessen Horowitz and Thrive, among others, the person said. Index Ventures declined to comment. Anysphere, Benchmark, Andreessen Horowitz, and Thrive didn’t respond to requests for comment. Interest in the company has exploded so fast that last week, the unsolicited offers started at a $1.5 billion valuation, but have already risen to $2.5 billion, the person with direct knowledge of the company said. Sources also told …