From Beijing startup to $2B Meta acquisition: A timeline of innovation, funding, and global expansion
April 2022
Xiao Hong and Yichao "Peak" Ji founded Beijing Butterfly Effect Technology in Wuhan, Hubei province.
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March 2025
Manus, a general-purpose AI agent capable of executing complex tasks, makes its striking debut.
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April 2025
Benchmark Capital leads a $75 million Series B round at a $500 million valuation.
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July 2025
Butterfly Effect relocates headquarters from Beijing to Singapore, establishing Butterfly Effect Pte.
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December 2025
Meta acquires Manus for over $2 billion, marking a landmark acquisition in the AI sector.
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Total Funding Raised
$85M
Across 3 funding rounds
Series B Valuation
$500M
April 2025
Meta Acquisition
$2B+
December 2025
Time to Acquisition
9 months
From launch to Meta deal
💡 Tip: Click "Learn About Benchmark" above to explore Benchmark Capital's investment thesis and Chetan Puttagunta's strategic role in the Series B round.
Meet the visionaries behind Manus: Xiao Hong and Yichao "Peak" Ji, who transformed Butterfly Effect into a $2B+ acquisition by Meta
Xiao Hong's strategic vision and regulatory acumen are perfectly balanced by Yichao "Peak" Ji's technical depth and engineering excellence. Together, they identified the autonomous agents opportunity, built world-class technology, navigated complex geopolitics, and achieved a $2B+ Meta acquisition in less than a year.
💡 Tip: Click on either founder card to expand and learn more about their backgrounds, previous ventures, key accomplishments, and vision for the future of AI agents.
How US export controls, regulatory scrutiny, and geopolitical tensions shaped Manus's strategic decision to relocate from Beijing to Singapore.
Understanding the external pressures that shaped Manus's strategic decision to relocate from China to Singapore
Manus faced a fundamental paradox: as a Chinese-founded company relying on US-developed AI infrastructure (Anthropic's Claude), it was caught between two increasingly divergent regulatory regimes. US export controls on advanced chips constrained operations in China, while US geopolitical concerns about Chinese AI companies created friction with American investors and regulators. Singapore offered a neutral jurisdiction that resolved this tension.
Export Controls as a Catalyst
US restrictions on advanced chip exports to China created operational constraints that made it difficult for Manus to maintain infrastructure in China while serving global markets.
Regulatory Scrutiny Accelerated Timeline
The CFIUS review and Congressional criticism of Benchmark's investment created urgency around relocating. Manus management recognized that operating as a Chinese company would face structural headwinds.
Singapore as Strategic Solution
By relocating to Singapore, Manus resolved the paradox of being a Chinese company dependent on US technology. Singapore's neutral status and business-friendly environment made it an ideal jurisdiction for a global AI company.
Template for Global Expansion
Manus's successful relocation and Meta acquisition demonstrate that Chinese-founded AI companies can achieve global success by establishing themselves in neutral jurisdictions and operating transparently.
📊 Timeline Categories: 🚫 Export Control (US chip restrictions), ⚖️ Regulatory (government reviews), 🌍 Geopolitical (political/diplomatic), 🎯 Company Action (Manus decisions)
Six critical lessons from Manus's journey
Where a company is headquartered determines access to capital, talent, and markets. Manus relocated to Singapore to resolve the paradox of being Chinese-founded but reliant on US AI infrastructure, enabling access to US capital markets and Meta acquisition.
Key Insight
Relocation enabled access to US capital markets and made the company an attractive acquisition target for Meta.
Geopolitics directly influences venture capital decisions, regulatory scrutiny, and company strategy. Benchmark's investment triggered Treasury reviews and Congressional criticism, accelerating Manus's relocation while US-China tensions made it difficult for Chinese-founded AI companies to operate globally.
Key Insight
Geopolitical factors are structural forces that shape the operating environment for AI companies.
Xiao Hong's strategic vision balanced Yichao "Peak" Ji's technical depth, enabling rapid scaling from launch to acquisition in under a year. Their partnership proved resilient during the challenging relocation, maintaining investor confidence.
Key Insight
Investors should prioritize founder complementarity as a key success factor.
Winners emerge and are acquired within months, not years. Manus went from launch to Series B to $2B+ Meta acquisition in less than a year—a 4x return in nine months.
Key Insight
The window to build and scale is narrowing; founders must move with urgency.
The ability to navigate complex regulatory landscapes is as important as technical innovation. Manus transformed regulatory risk into competitive advantage through transparency and strategic positioning, making it an attractive acquisition target for Meta.
Key Insight
View regulatory challenges as opportunities to differentiate through transparency and strategic positioning.
Autonomous agents—AI that takes action—proved to be the right bet at the right time. Manus recognized autonomous agents as the next frontier before it became mainstream, and Meta's $2B+ acquisition validates the strategic importance of agentic AI.
Key Insight
Successful AI startups identify emerging trends early; investors should prioritize founders with vision.
Manus's journey from Beijing startup to $2B Meta acquisition in less than a year demonstrates that AI startups must navigate an increasingly complex landscape shaped by technology, geopolitics, and market dynamics. Success requires more than technical excellence—it demands strategic vision, geopolitical awareness, regulatory acumen, and the ability to move with speed and decisiveness.
Explore additional articles, analysis, and coverage about Manus, Benchmark Capital, and the AI funding landscape
Coverage of Meta's $2B+ acquisition of Manus, marking the culmination of the company's rapid growth from Beijing startup to global AI leader.
CNBC
Dec 30, 2025
Details on Benchmark Capital's lead investment in Manus's Series B round and the company's positioning in the agentic AI space.
Silicon Republic
Apr 2025
In-depth analysis of Manus's strategic relocation from Beijing to Singapore, exploring the geopolitical and regulatory factors behind the move.
ThinkChina
Jun 2025
Analysis of the controversy surrounding Benchmark's investment in Manus, highlighting the tensions between Silicon Valley investors on China policy.
Bloomberg
Jul 14, 2025
Deep dive into Benchmark Capital's investment thesis for agentic AI and Chetan Puttagunta's strategic vision for the autonomous agents market.
VentureBeat
May 2025
Comprehensive analysis of the emerging autonomous agents market, comparing Manus's approach with competitors like OpenAI and Google.
The Information
Nov 2025
Case study examining how geopolitical factors, regulatory challenges, and strategic positioning influenced Manus's journey to acquisition.
Fortune
Dec 2025
Profile of Benchmark Capital's evolution in China investments and Chetan Puttagunta's role in championing the Manus investment.
Axios
Aug 2025
These resources include news coverage, analysis, and case studies from leading publications covering Manus\'s funding journey, Benchmark Capital\'s investment strategy, and the broader landscape of AI agents and geopolitical factors shaping the industry. All links open in a new tab.