Butterfly Effect funding and corporate restructuring

Butterfly Effect, the developer of the AI agent Manus, has secured over $500 million in a new funding round led by Boyu Capital and IDG Capital. The round included participation from existing investors such as Tencent, HongShan (Sequoia China), and Zhen Fund.

This financial milestone follows a period of corporate restructuring after Chinese regulatory authorities blocked an attempt by Meta to acquire the company for approximately $2 billion. Regulators cited concerns regarding data and algorithm origins, necessitating a reversal of the transaction. Following the block, the founding team repurchased shares to resume independent operations.

The company’s valuation has reportedly reached approximately $4 billion, doubling its value during the Meta acquisition attempt. This growth coincides with a significant increase in revenue, with an annual recurring revenue projected to reach between $400 million and $500 million by mid-2026. Manus has also expanded its product lineup with the release of version 2.0 and the announcement of ‘Cue,’ a standalone personal agent application, while establishing a dedicated team for the Chinese market.