Cursor Investors Realize Partial Exits on Secondary Market at $20 Billion Valuation

Early investors in Cursor, the AI-powered code editor developed by Anysphere Inc., have reportedly realized partial exits on the secondary markets at a valuation of $20 billion. The news, shared by Arfur Rock, indicates a significant liquidity event for the rapidly growing artificial intelligence startup. This valuation marks a substantial increase from the company's last publicly reported primary funding round.

Anysphere Inc., founded in 2022 by MIT graduates, has quickly become a prominent player in the AI development tools sector. The company's flagship product, Cursor, is an AI-powered integrated development environment (IDE) designed to enhance developer productivity through features like code generation and natural language codebase queries. Its rapid adoption has led to a series of impressive funding rounds and valuation hikes.

The $20 billion valuation on the secondary market significantly surpasses Cursor's last reported primary market valuation of $9.9 billion, which was achieved in a $900 million Series C funding round in June 2025. That round was led by Thrive Capital, with participation from Andreessen Horowitz, Accel, and DST Global. The company has demonstrated exceptional growth, with its Annual Recurring Revenue (ARR) exceeding $500 million as of June 2025, making it one of the fastest-growing SaaS companies.

Secondary market transactions allow early investors and employees to sell their shares before a company goes public, providing liquidity. Such exits at a premium valuation suggest strong investor confidence and high demand for Anysphere's equity. This trend is common for high-growth AI companies that attract significant private capital.

While the specific details of these partial exits and the investors involved were not immediately disclosed, the reported $20 billion valuation underscores the intense interest and perceived value in advanced AI development tools. The company's continuous innovation in AI-assisted coding positions it at the forefront of a transformative industry.