Manus parent Butterfly Effect raises over $500 million in new funding

Butterfly Effect, the parent company of the AI agent Manus, has announced a new funding round exceeding $500 million. The round was led by Boyu Capital and IDG Capital, with continued support from existing investors including Tencent, Sequoia China, and ZhenFund.

The company’s valuation has reached approximately $4 billion, doubling its valuation at the time of its acquisition by Meta. This follows a period of significant corporate restructuring. After Meta’s attempt to acquire Manus was blocked by Chinese regulatory authorities—who required the reversal of the transaction to prevent improper ‘outbound’ restructuring—the company underwent a buyback process. Tencent emerged as the largest external institutional investor, holding approximately 20% of the shares.

Manus has since resumed independent operations, separating from Meta to focus on developing generative AI agent products for a global user base. Despite the recent turbulence, the company reports rapid growth, with its annualized revenue run rate projected to reach between $400 million and $500 million by June 2026.