Manus Parent Raises Over $500M in First Round Since Meta Deal Collapse

Butterfly Effect, the parent of Chinese AI lab Manus, said on Thursday it has raised more than $500 million — its first funding round since Chinese authorities forced Meta to abandon its $2 billion acquisition of the startup in April.

The company announced the round in a WeChat post. Boyu Capital and IDG Capital led the round. Existing shareholders Tencent, HSG (formerly Sequoia China), ZhenFund and others also participated. Manus said it will keep hiring both in China and abroad.

What did the round leave unsaid?

Manus did not disclose its valuation. Last month, the company was said to be in talks with investors to raise $500 million at a $4 billion valuation. Manus did not respond to TechCrunch's questions about its valuation after the announcement.

The $4 billion figure, if confirmed by future disclosures, would mark a steep step up for a startup that was reportedly generating just over $100 million in annual recurring revenue at the time the Meta deal was struck.

How did Manus get here?

The company went viral last year after a demo of its AI agent. In mid-2025, it relocated its staff to Singapore. That December, it announced a $2 billion acquisition agreement with Meta, with annual recurring revenue reportedly above $100 million at the time.

The deal did not survive regulatory pressure at home. In April, Chinese authorities ordered the startup to unwind the transaction amid intensifying worries in China over losing AI talent and researchers to the West.

In August, Manus resumed independent operations following the end of the Meta deal. As part of the split, the company said it was required to delete some user data. According to the report, Manus is also considering going public in Hong Kong.

What does Manus actually sell?

Manus makes AI products and agents similar to those from Cursor, Lovable and Replit. Its offering spans:

• A chatbot
• Vibe-coding tools for building apps and websites
• Design and presentation creation
• Video generation and other capabilities

The company recently launched Manus 2.0, which it says brings a new architecture with new products and capabilities built around a new harness.

It also introduced Cue, a standalone app that gives personal AI agents their own email addresses, phone numbers, digital wallets and computers. The app lets agents communicate, handle tasks across services and make payments within limits set by the user.

Why does the round matter?

The $500 million gives Manus fresh runway to compete in the crowded AI agent and vibe-coding market without a Western acquirer — and positions it for a potential Hong Kong listing that would test investor appetite for Chinese AI talent that Beijing made clear it intends to keep.