by aduffy on 6/6/25, 7:58 PM
That's quite a war chest to raise in such a short period of time. The market has concentrated with the couple of recent acquisitions. Sounds like likely uses of that cash are
- Buy a few million more users with more generous free tier, as models get cheaper the cost to acquire the marginal customer goes down over time anyway
- Build your own foundation model for coding. tbh I'm skeptical that a company can do this better than the Big 3 AI cos.
- Go to war over enterprise. Do a deal with Deloitte/Accenture and get every single one of their consultants spending 8hrs a day in Cursor. Another flavor: compete head-on with Accenture by making your own service firm that undercuts them and delivers ahead of schedule for once.
by bix6 on 6/6/25, 6:30 PM
Wow only a 21.6x rev multiple. The others a month ago were 75x for windsurf acquisition by OpenAI and a 45x on cursors $200M raise at $9B val.
Separately, has anyone gotten through to cursor support? They sent me a welcome email asking for feedback but when I responded nobody answered back.
Edit: added old financing info.
by a13n on 6/6/25, 6:38 PM
I predict that in 6-12 months we'll all be back on VS Code. I would hate to have Microsoft as a direct competitor, especially in a space they care so much about (developers + AI).
by adwn on 6/6/25, 6:32 PM
$900 million?! That's an absolutely insane amount of money. How much of this will go into building the product itself, and how much into converting cash to marketshare? And they raised $100 million not even 5 months ago. Have they already burned through that pile of money?
I mean, their product is good – I'm using and paying for Cursor – but not fantastic. And there's a lot of competition. And the switching cost is relatively low.
by xiphias2 on 6/6/25, 10:55 PM
Since Codex web ui came out I stopped using Cursor and just direct pull requests on Codex web interface. I love it so much, I belive most people will move to this kind of development as models are getting stronger, and the whole agent+user workflow will switch to pull request based development.
It’s not like I’m not using Cursor at all, it just became the 10-20% of my workflow compared to almost 100% before.
by bahmboo on 6/7/25, 1:54 AM
I use Roo Code. I love it. Are Cursor or Copilot or any of the other "front ends" so much better? I guess it's up to me to find out but wonder what others have found. [edit: grammar]
by habosa on 6/7/25, 2:13 AM
Ok so OpenAI owns Windsurf now, so I would expect them to cut Cursor off from the really good stuff at some point. Anthropic has Claude Code, they could do the same. Google is a little farther behind but they do have an AI Studio thing that could be viewed as competitive.
Feels like Cursor has to make their own models to guarantee long-term survival? Especially if they’re not going for an acquisition (reports are they turned down OpenAI). Can they make a model that’s good enough for a world where OpenAI / Anthropic / Google all cut them off?
by justmarc on 6/7/25, 7:28 AM
I have a feeling we're getting into an "AI squeeze" soon. So many companies in this sphere are going to have to fight for their lives and or implode.
by gsibble on 6/6/25, 6:20 PM
Impressive. Didn't they just raise a bunch recently?
by mythz on 6/7/25, 4:16 AM
Good to see with that war chest they'll be competing in this space for some time yet - which we'll need more of to keep the pricing down (aka subsidized).
Never tried Cursor since I'm not prepared to leave my IDEs, but still got a full AI toolbox with augmentcode.com, GitHub Copilot, Claude Code and Gemini Code Assist enabled in both my primary VS Code and Rider IDEs.
by naiv on 6/6/25, 6:34 PM
so enough for them to build their own model
by andrethegiant on 6/6/25, 10:21 PM
Too busy rolling in money to actually write a substantial announcement?
by stonecharioteer on 6/7/25, 12:06 PM
I don't understand funding whatsoever. How does a company go from Series B to C in 5 months?
by drx on 6/6/25, 6:33 PM
I thought it was a pretty interesting choice to post the funding announcement as the team and not as the CEO, more companies should probably do that.
by moralestapia on 6/7/25, 2:00 AM
2 million paying users?
Idk, hard to believe.
Wow.
by iamsaitam on 6/6/25, 7:52 PM
It's very weird that they use their blog to post about this instead of all the feature they've been adding.