# Butterfly Effect funding and corporate restructuring > Developing situation record from CLSTR: https://clstr.news/situations/butterfly-effect-funding-and-corporate-restructuring > Updated: 2026-10-11T05:08:33.000Z. Sources: 3. Developments: 2. 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. ## Timeline ### 2026-10-11: Manus developer Butterfly Effect raises over $500 million AI agent developer Butterfly Effect (Manus) raised over $500 million, reaching a potential $4 billion valuation after resuming independent operations following a blocked acquisition by Meta. 2 sources. https://clstr.news/cluster/manus-developer-butterfly-effect-raises-over-500-million ### 2026-10-08: Manus parent Butterfly Effect raises over $500 million in new funding Manus parent company Butterfly Effect raised over $500 million at a $4 billion valuation, following a regulatory-driven separation from Meta and a return to independent operations. 2 sources. https://clstr.news/cluster/manus-parent-butterfly-effect-raises-over-500-million-in-new-funding --- Cite as: Butterfly Effect funding and corporate restructuring. CLSTR, https://clstr.news/situations/butterfly-effect-funding-and-corporate-restructuring