Manus developer Butterfly Effect raises over $500 million

Butterfly Effect, the developer of the general-purpose AI agent Manus, has announced a new funding round exceeding $500 million. The round was led by Boyu Capital and IDG Capital, with participation from existing shareholders including Tencent, HongShan (Sequoia China), and Zhen Fund.

This financing follows Manus's return to independent operations after a failed acquisition by Meta. Originally, Meta had moved to acquire the company for approximately $2 billion, but the deal was blocked by Chinese regulatory authorities due to concerns regarding data and algorithm origins. Following the regulatory decision, the founding team repurchased shares and resumed independent operations in September.

Reports suggest the company's valuation may now reach approximately $4 billion, doubling its previous valuation during the Meta acquisition attempt. This growth is attributed to significant revenue increases, with annual recurring revenue (ARR) reportedly rising from $100 million in late 2025 to a projected range of $400 million to $500 million by mid-2026.

Manus has recently expanded its product offerings, including the release of version 2.0 and the announcement of 'Cue,' a standalone personal agent application. The company is also establishing a product team specifically for the Chinese market to collaborate with local AI model developers and ecosystem partners.