Manus Secures $500M-Plus Funding Round Following Failed Meta Buyout

Manus Secures $500M-Plus Funding Round Following Failed Meta Buyout

Butterfly Effect, the parent company of AI agent startup Manus, has raised more than $500 million in its first financing round since Meta’s planned acquisition of the company was blocked by Chinese regulators. Boyu Capital and IDG Capital led the round, with Tencent, HSG and ZhenFund also participating.

The company did not disclose its valuation or explain how it plans to use the new capital. Bloomberg reported in September that Manus was nearing a $500 million raise at a valuation of about $4 billion, roughly twice the amount Meta had agreed to pay for the company.

The funding follows a turbulent period for Manus. Meta agreed to acquire the startup in December 2025 for more than $2 billion, after Manus had shifted its headquarters and key staff from China to Singapore.

Chinese authorities later intervened. On April 27, a security review office under the National Development and Reform Commission prohibited the acquisition and directed the companies to unwind the transaction.

Meta subsequently began separating its systems from Manus. In June, Manus lost access to Meta’s internal data systems, while the startup’s earlier investors moved to buy the company back at the same $2 billion valuation attached to the Meta deal.

Manus said in August that it expected to return to operating independently. As part of the separation, the company deleted data created by some users on or after December 29, 2025, the date Meta announced its purchase.

The new financing gives Manus fresh backing as it rebuilds as a standalone company. Earlier this month, the startup said its founding team would continue developing generative AI agents for users worldwide.

Manus develops general-purpose AI agents designed to complete tasks such as research and automation with limited human involvement. Since separating from Meta, the company has introduced Manus 2.0, which runs on an in-house execution system called Cascade, and launched Cue, a personal-agent app in which individual agents can have their own email address, phone number and mobile wallet.

The round also brings back several investors already tied to the company. Tencent, HSG and ZhenFund participated alongside Boyu Capital and IDG Capital, giving Manus a new financial base after the failed Meta transaction.

“The fundraising shows that the short-term fallout of the Meta case has been contained and investors are willing to back Manus as an independent company,” said Dan Wang, China director at Eurasia Group.

Analysts say the next challenge is showing that Manus can operate at scale while meeting regulatory requirements and building a sustainable business.

“The immediate task for Manus now is proving scale, profitability and regulatory alignment,” said Han Lin, China country director at The Asia Group.

The failed acquisition has also left both Manus and Meta moving forward separately in AI agents. Meta has continued developing its own personal AI agent products, while Manus is now raising capital as an independent company and expanding its own agent platform.

This analysis is based on reporting from TNW & CNBC.

Image courtesy of VCG.

This article was generated with AI assistance and reviewed for accuracy and quality.

Updated Oct 8, 2026

About this article: This article was generated with AI assistance and reviewed by our editorial team to ensure it follows our editorial standards for accuracy and independence. We maintain strict fact-checking protocols and cite all sources.

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