Manus parent Butterfly Effect said on Thursday, October 8, that it raised more than $500 million as the AI-agent company resumed independent operations after Meta’s proposed acquisition was unwound. The deal had been valued at more than $2 billion.

The round was co-led by Boyu Capital and IDG Capital. Existing investors Tencent, Sequoia China and ZhenFund also participated, Reuters reported. Butterfly Effect did not disclose a valuation for the new funding.

Funding after the deal reversal

In April, Chinese authorities ordered Meta and Manus to withdraw from the acquisition. The Associated Press reported that China’s National Development and Reform Commission announced the prohibition. Manus is based in Singapore and has Chinese roots.

Manus said in August that it would return to operating independently. The funding gives the company fresh capital after the separation, but does not show how investors value it now.

What the reported revenue figures show

The Information reported in June that Manus’s annualized revenue run rate had risen to between $400 million and $500 million. It was about $100 million around the time Meta announced its proposed acquisition.

  • New funding: more than $500 million
  • Proposed Meta deal value: more than $2 billion
  • Reported annualized revenue run rate: $400 million to $500 million, up from about $100 million

The revenue figures are a reported run rate, not audited annual revenue. They offer a point of comparison, but they do not establish the company’s valuation.

Manus has secured more than $500 million after its proposed Meta deal was reversed, while its new valuation remains undisclosed.

The episode also shows how government scrutiny can alter the course of a cross-border AI acquisition. For investors, the key unknown is how the company’s new funding and reported revenue growth will translate into a valuation.