By iNextAgent 
Understanding Silicon Valley AI Startup Valuations
Silicon Valley AI startups have a distinct valuation logic based on Annual Recurring Revenue (ARR). Enterprise software companies typically command 30x their ARR, while consumer software companies are valued at around 20x ARR.
At the time of acquisition, Manus had reached an impressive $120 million in annual revenue. Using this valuation framework, a price tag between $2 billion and $3 billion would be reasonable. However, Meta paid a premium of 30-50% for this strategic acquisition, making the $5 billion price tag fall within a justifiable range.
The Unique Value of Manus’ Agent Technology
Manus stands out as the first consumer-oriented general-purpose Agent product. In just 9 months after its launch, the company amassed millions of paying users and achieved $120 million in annual revenue.
Key Product Advantages
What makes Manus particularly valuable is its user-centric approach:
- It automatically selects the optimal AI model for each task
- It excels at optimizing complex tasks like generating PPTs with integrated images
- It achieves significantly higher task completion rates than standard chatbots
The AI industry is shifting from prioritizing technical complexity to focusing on practical applications, making user engagement capabilities the new core value.
The AI Native Team Advantage
Manus’ team demonstrates a deep understanding of Agent technology that surpasses most industry players. As early as March 2025, they proposed the concept of “not relying on workflows, fully trusting large model intelligence,” believing we shouldn’t limit AI potential with human intelligence constraints.
Their product strategy emphasizes “consuming more tokens to enhance user experience,” increasing interaction depth to gather more user feedback. This creates an AI-native organizational mindset that provides strategic value for Meta’s AI product ecosystem.
Key Takeaways
- Silicon Valley AI startup valuations typically range from 20-30x annual recurring revenue
- Manus pioneered consumer-oriented general-purpose Agent technology with exceptional user growth
- The company’s AI-native team approach provides strategic advantages for Meta
- The $5 billion acquisition price represents a reasonable premium for a strategically important asset
- The AI industry is shifting from technical complexity to practical application focus