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 highlights

00:56 Michael Fertik and the Reputation Economy

04:15 Why retirement did not last

07:00 AI, work, and economic disruption

09:10 Culture, education, and capitalism in America

24:35 Model Code AI and legacy technical debt