How David Tisch’s BoxGroup turned a $750K bet on Cursor into a $1 billion exit by breaking all the VC rules

David Tisch, founder of venture capital firm BoxGroup, made a $750,000 investment in AI coding startup Cursor in 2022. This early bet has now paid off handsomely, with Cursor being acquired by Elon Musk's SpaceX for a staggering $60 billion. The investment returns are projected to be around $1 billion, making it the largest VC-backed acquisition of all time.

For Tisch, investing in startups is akin to collecting—a passion that began in his childhood, where he and BoxGroup were among the first to invest in Cursor. Tisch believes that the success of a startup depends primarily on the person behind it, not the idea. This philosophy is evident in Cursor's case, where the original idea was to develop AI for CAD, but the investment was made based on the potential of CEO Michael Truell and his team.

Tisch's approach to venture capital is a stark contrast to the trend in the industry. Most VCs are big, competitive, and more focused on media presence. However, BoxGroup prides itself on being collaborative and partner-like, sharing deal flow and collaborating with other investors. This strategy, while seemingly counterintuitive in today's VC landscape, has proven successful for Tisch and BoxGroup.