The Distribution by Juniper Square

Redefining Venture: Investing in What Others Miss - Charles Hudson - Founder and Managing Partner @ Precursor Ventures

May 13, 2025

Charles Hudson, Founder and Managing Partner at Precursor Ventures, discusses the intricacies of pre-seed investing and his unique approach to backing unconventional founders. He emphasizes the importance of product velocity as a success indicator and the shift from institutional seed to pre-seed investing. Hudson shares insights on assessing solo versus co-founding teams, the role of domain expertise, and how a small fund design fosters success. Additionally, they delve into AI’s transformative impact and what the next generation of startups may look like.

01:03:33

Episode guests

Charles Hudson

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Charles Hudson emphasizes the importance of backing unconventional founders who demonstrate resilience and adaptability in uncertain environments during pre-seed investments.

The discussion highlights the significance of storytelling in understanding a founder's journey, which provides insights into their motivation and potential for success.

Hudson stresses that timing and market demand are crucial factors for AI startups, amidst the evolving landscape of technology and commercial viability.

Deep dives

Embracing Uncertainty in Entrepreneurship

Starting a company involves stepping off the well-trodden path and embracing a journey filled with uncertainty and self-discovery. Entrepreneurs must be willing to face challenges head-on and learn from the unpredictable nature of their venture. Individuals who thrive in ambiguous environments tend to demonstrate the resilience and adaptability needed for entrepreneurial success. This mindset is crucial, as the journey of building a business is often as valuable as the eventual outcome.

Intro

2min

Journey Through Venture Capital: From Early Career to Firm Founding

2min

Exploring Roots: The Journey from Michigan to Entrepreneurship

2min

From Michigan to Silicon Valley: A Journey of Serendipity

11min

From Gaia to Startup: A Venture Capital Journey

28min

The Power of Personal Narratives in Entrepreneurship

8min

Navigating the Future: AI and Market Disruptions

8min

In this episode of The Distribution, host Brandon Sedloff sits down with Charles Hudson, Managing Partner and Founder at Precursor Ventures, to explore the challenges and opportunities of pre-seed investing. Charles shares how his early career at In-Q-Tel and Uncork Capital shaped his thesis for launching Precursor—a fund intentionally designed to write small checks to first-time founders before there’s traction, product, or even a network.

They discuss the philosophy behind backing “strangers with data,” how to identify founders with the resilience and creativity to thrive at the zero-to-one stage, and what’s often misunderstood about investing in companies before traditional signals exist. Charles also reflects on why staying small by design is key to Precursor’s success and how firm culture, founder psychology, and capital strategy all intertwine in early-stage venture.

They also cover:

* How product velocity is a leading indicator of startup success

* The shift from institutional seed to pre-seed and why timing matters

* Red flags and green flags when backing solo vs. co-founding teams

* Why domain expertise isn’t a requirement—and when it actually matters

* Precursor’s use of founder assessments and frameworks for diligence

* Thoughts on AI, market timing, and where the next generation of breakout companies will emerge

This episode is a must-listen for investors, founders, and allocators who want a firsthand look at how conviction, curiosity, and consistency define the earliest stages of venture capital.

Links:

Charles on LinkedIn - https://www.linkedin.com/in/chudson/

Precursor Ventures - https://precursorvc.com/

Brandon on LinkedIn - https://www.linkedin.com/in/bsedloff/

Juniper Square - https://www.junipersquare.com/

Topics:

(00:00:00) - Intro

(00:01:51) - Charles’ background and career

(00:13:52) - Advice to young professionals

(00:17:06) - More on Charles’ career

(00:30:45) - Launching Precursor

(00:34:39) - The current state of Precursor and their mindset toward investing