He Wrote the First Check in Cursor ft. Michael Fertik of Verdict Capital

Most venture investors wait for traction. Michael Fertik invests before the company is incorporated, before there is a product, and sometimes before the category has a name.Michael, Managing Director and Founder of Verdict Capital, joins Yoel Israel to explain what “first check” means in practice and why he believes the earliest investor can have a distinct advantage. He shares the story of backing Anysphere before its merger with Cursor, how he evaluates founders with almost no conventional signal, and why most venture firms are reluctant to invest that early.The conversation also turns to Israel. Michael discusses the risks of using Israeli pilot customers as proof of demand, why he encourages Israeli founders to think about their US company structure from day one, and what he has learned from building his first team in Israel through Model Code AI.They also discuss legacy code, AI’s effect on work, purpose, capitalism, the cultural changes taking place in America, and why Michael remains bullish on Israeli founders during wartime.Hosted by Yoel Israel for IsraelTech.---00:00 Opening highlights00:56 Michael Fertik and the Reputation Economy04:15 Why retirement did not last07:00 AI, work, and economic disruption09:10 Culture, education, and capitalism in America24:35 Model Code AI and legacy technical debt36:40 The mistakes Israeli startups keep making45:40 What first-check investing really means50:00 The early Anysphere and Cursor story55:00 Israel, wartime pressure, and founder resilience---Thank you to our incredible partners for making this all possible!IsraelTech is proud to partner with Rhydlwood. Rhydlwood is an exclusive online business hub designed for business owners, entrepreneurs, and CEOs, focused on providing clarity, decision-making support, and sustainable growth.Check them out at Rhydlwood.comIsraelTech is also proud to partner with Deel, the global all-in-one HR and payroll platform for teams in 150+ countries. To support the show, please go check out our partner Deel at: https://www.deel.com/israeltechFinally, we’re proud to partner with Wadi Digital, Israel’s leading tech marketing agency.Learn more at WadiDigital.com---Subscribe to our weekly newsletter 👉🏼 https://magic.beehiiv.com/v1/26afeab9... variableFollow IsraelTech on your fav social media feedX (Twitter): https://x.com/IsraelTechLinkedIn: / israel-tech Facebook: / israeltechHQ Instagram: / israeltechHQ TikTok: / israeltechHQSpotify: https://open.spotify.com/show/7fkZX1R...Follow Yoel on your fav social media:Instagram: / yoeltisrael LinkedIn: / yoeltisrael X [Twitter]: / yoeltisrael Facebook: / yoeltisrael