Keep pulling the thread on Miles Clements.
Cursor reportedly surpassed $2 billion in Annual Recurring Revenue (ARR).
90% of Cursor users are daily active users of its agent product.
Cursor's agent product usage grew 15x last year.
Cursor's cloud agent product was responsible for 35% of merged pull requests within its first three months on the market.
The investment thesis for Cursor is that it has the potential to become the first platform company for the entire engineering vertical.
At the time of Excel's initial investment, Cursor had approximately $100 million in ARR and was projecting to reach $500 million by year-end.
Cursor ended the previous year with ARR in the billions, significantly exceeding its own $500 million projection and Excel's internal $300 million forecast.
Excel acknowledges that it, along with many other firms, missed the early investment opportunities in foundation model companies.
Excel has invested in multiple funding rounds for Anthropic.
Myles Clements believes it is plausible that a small number of private AI companies, like Anthropic, could become trillion-dollar businesses.
Excel invested in CrowdStrike in 2011 at a $160 million post-money valuation, and the company is now worth approximately $100 billion.
Myles Clements believes AI companies in regulated verticals like legal and accounting, such as Basis, tend to have a longer time-to-value but exhibit transformational durability once integrated into a firm's workflow.