Manus raises more than $500M in first funding round since Meta exit

Butterfly Effect, the company behind AI agent startup Manus, said that it has closed a funding round of more than $500 million.

This would be the first raise since Meta’s $2 billion-plus purchase of Manus was undone on Beijing’s orders.

Boyu Capital and IDG Capital led the round. Existing investors Tencent, HSG (formerly Sequoia China), and ZhenFund also took part.

The announcement did not give a valuation or say how the money will be used, Chinese business outlet Yicai reported.

In September, Bloomberg reported that Manus was close to raising $500 million at a valuation of about $4 billion. That would be roughly double the $2 billion price Meta had agreed to pay.

Manus builds general-purpose AI agents, software tools that can perform tasks such as research and automation with minimal human input.

Meta bought the company in December 2025, after Manus had moved its headquarters and key staff from China to Singapore.

However, China blocked the deal, and on April 27, a security review office run by the National Development and Reform Commission (NDRC), China’s state planner, banned the acquisition and told the parties to cancel it.

After that, Meta began to separate from Manus, and in June, it cut Manus off from its internal data systems .

As a result, Manus’ early investors moved to buy the company back at the $2 billion valuation.

In August, Manus said it would soon resume operating as an independent company. As part of the split, it deleted data that some users had created on or after December 29, 2025, the date Meta bought it.