Benchmark's big bet on Chinese AI Agent companies, its Investment Approach
Synthesia ARR hit $100M
Some ARR tractions worth noting last week:
Cursor ARR Hits $300M
Cursor, the AI-native code editor developed by Anysphere, has achieved a remarkable milestone by reaching $300 million in Annual Recurring Revenue (ARR) within just 21 months of its launch.
This rapid growth positions Cursor as the fastest-growing SaaS company in history, surpassing competitors like Wiz, Deel, and Ramp in terms of ARR acceleration.
The company’s success is attributed to its product-led growth strategy and a freemium model that has attracted a vast user base of individual developers.
Windsurf’s ARR May Surpass $100 Million
After Cursor declined an acquisition offer from OpenAI, OpenAI turned its attention to Windsurf, an AI coding tool company formerly known as Codeium.
Founded in 2021, Windsurf focuses on helping developers write code using natural language prompts, with support for integration into traditional enterprise systems.
As of early 2025, Windsurf’s ARR has grown from $40 million in February to $100 million. Windsurf CEO Varun Mohan emphasized the company’s “dehydrated growth” strategy—maintaining a lean team and only hiring when necessary to maximize individual productivity. Additionally, Mohan advocates for a self-disruptive product approach every 6 to 12 months to stay ahead in the industry.
Synthesia ARR hit $100M
Synthesia is a leading AI video generation platform that specializes in creating high-quality videos from text in over 140 languages. The platform leverages advanced artificial intelligence technology to produce videos featuring realistic AI avatars that can be customized to reflect brand identity or the preferences of the user.
Synthesia is widely used across various sectors such as Marketing, Training and Development, Customer Service, and Information Security. It said 70% of the Fortune 100 are already on board. Millions more around the world. and Adobe Ventures just became their newest strategic investor.
Benchmark’s Big Bet on Chinese AI companies
Last Friday, news that Benchmark led a $75 million Series B round for Manus AI from China at a $500 million valuation drew widespread attention, particularly against the backdrop of current geopolitical tensions between China and the U.S.
It is reported that Benchmark contributed $50 million of the total $75 million investment.
This would mark Benchmark’s second consecutive lead investment in a Chinese-founded AI company within a year if confirmed. In June 2024, Benchmark also led the Series A round for HeyGen, a company founded by a Chinese team, investing $55 million out of $60 million at a similar $500 million valuation.
Adding to a previous investment in another Chinese-born-founded AI company Fireworks AI, it’s clear that Benchmark has not shied away from Chinese background founders despite rising political tensions — if anything, it’s strengthened its support. This growing openness is one of the reasons why the Manus deal has captured so much interest.
Following Benchmark’s typical style, the firm will likely secure a board seat following this investment. Benchmark’s involvement in Manus AI (valued at ~$500M) was described as a “vote of confidence in Chinese AI’s competitive edge.”
As a boutique VC firm known for its elite reputation in the U.S., Benchmark operates with a model of a small group of fully equal partners deeply involved in investment decisions. Before 2020, Benchmark primarily invested in domestic U.S. companies. However, the explosive rise of AI in 2024 prompted the firm to broaden its scope and selectively support top Chinese founding teams.
Benchmark’s Timeline to Chinese-Founded AI Startups
Benchmark’s broader strategy toward Chinese-founded startups is cautious but increasingly open. The firm does not maintain a China-focused fund or office, yet its recent activity shows it will back Chinese entrepreneurs (or Chinese-origin startups) when the product and team meet its criteria.
In mid-2024, Benchmark announced a new $425M fund “for the AI startup era,” indicating a global AI focus. Its partners have publicly reiterated that great companies can come from anywhere – what matters is the idea and execution.