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Benchmark’s investment in the startup behind the AI agent Manus drew flack last year from some venture capitalists who viewed
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But when Meta said in December that it was buying the startup, called Butterfly Effect, for over $2 billion, the early-stage venture capital firm’s bet seemed to pay off.
Key facts
- But there’s a twist: Benchmark, which led the $75 million round of financing at a roughly $500 million valuation last spring, has already distributed the returns from the transaction, which closed
- But when Meta said in December that it was buying the startup, called Butterfly Effect, for over $2 billion, the early-stage venture capital firm’s bet seemed to pay off
- Celebrating that deal may have been premature, though—or perhaps not, given possible legal hurdles in dismantling it
- Benchmark’s investment in the startup behind the AI agent Manus drew flack last year from some venture capitalists who viewed the investment in the company, which was founded in Beijing
Summary
Benchmark’s investment in the startup behind the AI agent Manus drew flack last year from some venture capitalists who viewed the investment in the company, which was founded in Beijing, as a national security risk. This week, Chinese regulators said they were blocking the sale of the startup, now located in Singapore, to Meta and would force the company to unwind it.