Manus raises more than $500 million after Meta deal unravels
In short
Manus parent Butterfly Effect announced more than $500 million in funding, its first round since Meta was forced to abandon its $2 billion acquisition. Boyu Capital and IDG Capital led the round, while Tencent, HSG and ZhenFund invested again.
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Butterfly Effect, the parent of AI agent company Manus, said on October 8 that it had raised more than $500 million. The round was led by Boyu Capital and IDG Capital, with existing shareholders Tencent, HSG and ZhenFund also participating. It was the company's first financing round since Meta was forced to abandon its $2 billion acquisition. [ 1 , 3 ]
The company did not announce its valuation. CNBC cited a Bloomberg report from the previous month saying the financing was expected to double Manus' valuation to $4 billion. TechCrunch also referred to earlier talks at that valuation and said Manus had not answered its questions about the figure. TechCrunch reported that the company planned to keep recruiting both domestically and internationally. [ 1 , 3 ]
The fundraising follows Chinese authorities' intervention in the Meta transaction. TechCrunch reported that Manus moved staff to Singapore in mid-2025 and announced the Meta deal that December, before Chinese authorities ordered it unwound in April. CNBC said Meta had been integrating the company's team and technology when the transaction was blocked. [ 1 , 3 ]
Both outlets reported that Manus had resumed independent operations. CNBC said the company announced earlier this month that its founding team would continue developing generative AI agents for global users. TechCrunch placed the resumption of independent operations in August and said the company had been required to delete some user data as part of the split. [ 1 , 3 ]
Analysts quoted by CNBC described the fundraising as a sign of continued investor support while pointing to work still ahead. Eurasia Group's Dan Wang said investors were willing to back Manus independently. The Asia Group's Han Lin said the company's immediate priorities were demonstrating scale, profitability and alignment with regulatory requirements. [ 1 ]
Why it matters
The financing follows Chinese authorities' intervention in the Meta deal and Manus' return to independent operations. Analysts quoted by CNBC said the company now needs to demonstrate scale, profitability and regulatory alignment.
Key facts
- Butterfly Effect said it raised more than $500 million in the first funding round since the split from Meta. [ 1 , 3 ]
- Boyu Capital and IDG Capital led the round, with participation by existing shareholders Tencent, HSG and ZhenFund. [ 1 , 3 ]
- The company did not disclose its valuation. [ 1 , 3 ]
- TechCrunch reported that Manus said it would continue hiring domestically and abroad. [ 3 ]
Confirmed by several sources
Still unclear
- The valuation achieved in the new financing. Both full reports say it was undisclosed; references to $4 billion concern earlier reporting about the planned round.