Our Series D in Cursor: Pushing the Frontier of AI Forward

We’re excited to deepen our commitment to Cursor by co-leading its $2.3 billion Series D investment. With millions of active users worldwide and customers including Nvidia, OpenAI, Stripe, over half of the Fortune 500 and virtually the entire Accel portfolio, Cursor has become the defining company behind AI’s most important application - code - and we believe the best is yet to come.

When we first partnered with the team, we marveled at the speed with which Cursor won the IDE market – a market which, despite many attempts, no one had ever been able to disrupt or substantially monetize. We believed the IDE was just the beginning and that the full potential of software engineering + AI would be unlocked through new form factors, models, and interfaces. Quite frankly, that is happening faster than we ever imagined. 

Today, whether you prefer Tab-ing through code in the Cursor IDE or prompting Cursor Agents in natural language; whether you deploy agents within Cursor or spin off background agents via the web app, Slack, or Linear, your entire developer workflow is at its best within Cursor. You have access to the best models for each task, ranging from the latest 3rd-party models to Cursor’s own frontier models, with each agent powered by Cursor’s best-in-class planning, context retrieval, and search tools. Most critically, every keystroke reinforces a powerful product flywheel - through innovations like online RL, as engineers become more productive, Cursor continues to improve. Every product update and every model release breeds more usage and drives further productivity gains to engineers everywhere. 

As developers continue to centralize their work in Cursor, we expect its product will naturally expand downstream to the rest of the software development toolchain. Bugbot, an AI code review tool and Cursor’s first add-on product, was adopted by over 3,000 customers within weeks of launch, signaling teams’ enthusiasm for deeper collaboration within Cursor.  

In just two short years Cursor has also become a platform company. As its own surface area expands, more and more companies find distribution advantages and product stickiness through integration with Cursor. For instance – Slack enables users to activate coding agents through Cursor without switching applications, Figma empowers users to go from design to code with agents orchestrated in Cursor, and within a week of Linear’s integration, over 45% of enterprise customers were assigning tasks to Cursor agents directly within Linear. This ecosystem interconnectedness is mutually reinforcing for all companies – but most importantly, a win for developers. 

In the future, we think the interplay of code + AI is the key to achieving superintelligent systems. In its simplest form code is the first derivative of technological progress, and every technology company in the world is becoming exponentially accelerated with tools like Cursor. As a vertically integrated research lab and software company, Cursor will continue to advance the model frontier while creating magical product moments in parallel.   

There is a lot of intrigue around Cursor: How have they grown so quickly? What is the culture like? Is the office intense? In our time working with them we’ve been delighted to find the team is young but mature, ambitious but humble, and above all they are very, very good humans. They are running their own race; in a world of “time to $100m ARR” charts they quietly eclipsed $1 billion within three quarters. In their own words, there is “much more work to do.” There’s little interest in fanfare or recognition - simply a shared goal of revolutionizing how developers create software.

With unmatched talent density, relentless product focus and a dedication to reinventing the modern startup from first principles, there is no better team to move forward the frontier of AI. We’re thrilled to be in business with Michael, Aman, Sualeh and this truly generational team and can’t wait to see what they accomplish next.

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