Investing in Startups E38: Lessons from Investing in 400 Startups with Charles Hudson of Precursor Ventures
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Sep 17, 2025 
Charles Hudson, Managing Partner and founder of Precursor Ventures, shares his expertise as a seasoned investor in over 400 startups. He emphasizes the importance of founder-centric investing, the challenges of liquidity in early-stage ventures, and the need for a resilient firm structure. Hudson also discusses how market forecasting can be tricky, advocating for focusing on founders instead. He provides insights on varying LP expectations and the potential pitfalls of early employee hires, highlighting the evolving landscape of venture capital.
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Fundraising Stress Changes Over Time
- Fundraising stress shifts across a firm's lifecycle and market context.
- Post-SVB and LP liquidity concerns made raising Fund 5 unusually difficult despite prior patience.
Take Modest Secondary At Series B
- Balance early secondary sales with LP preferences and long-term value maximization.
- Be prepared to sell modest stakes (10–20%) around Series B to return capital while preserving upside.
Who Buys Matters For Secondary Discounts
- Selling to the new round lead is often best and carries small discounts; open-market trades can require heavy haircuts.
- Large discounts (20–40%) usually make early selling unattractive unless compelled by LP pressure.