Butterfly Effect, the parent company of AI agent Manus, announced on October 8 that it had raised more than $500 million in its first funding round since Meta was forced to reverse its acquisition deal. According to CNBC, Boyu Capital and IDG Capital led the round, with Tencent, HSG, and ZhenFund continuing to participate as investors.
The new capital enables Manus to continue operating independently after a deal that was once expected to absorb the startup’s team and technology into Meta. However, the company has not disclosed its valuation following the round.
The $4 Billion Figure Remains Previously Reported Information
Bloomberg reported in September that Manus was expected to reach a $4 billion valuation in its new funding round, twice the value of the Meta transaction. CNBC reiterated that report while drawing a clear distinction with Butterfly Effect’s choice not to disclose any valuation in its October 8 announcement. What can be confirmed, according to CNBC’s reporting, is that the amount raised exceeded $500 million, along with the identities of the participating investors.
The round indicates that Manus can still secure financing following the ownership turmoil. It does not by itself prove that the company’s business model is profitable or that its AI agent has produced results commensurate with the valuation.
The Meta Acquisition
According to CNBC, Manus launched in China in early 2025 and subsequently relocated staff to Singapore after securing funding from Benchmark. Meta announced the acquisition in December for approximately $2 billion, but Chinese regulators subsequently blocked the deal.
China’s National Development and Reform Commission announced a ban on foreign investment in the Manus project. By that time, Meta had already begun integrating the startup’s team and technology. The matter was therefore not as straightforward as canceling an agreement before the two parties had started working together.
In early October, Manus said it had returned to independent operations. CNBC noted that the situation serves as an example of the difficulties faced by startups aiming to expand internationally while navigating requirements from multiple regulatory bodies.
New Capital Has Yet to Resolve Commercial Viability
Following its separation from Meta, Manus introduced Manus 2.0 with its in-house execution system, Cascade. The company also rolled out Cue, a personal agent application in which each agent has its own email address, phone number, and mobile wallet, according to CNBC.
These products show that Manus continues to develop toward empowering AI to execute tasks rather than simply answering questions. However, the current funding round was not accompanied by revenue or profit metrics in the information reported by CNBC.
The next question is how Manus will demonstrate scale of adoption, commercial viability, and regulatory compliance. A large funding round gives the company additional time; it does not resolve those demands on its own.