Layer Zero Rethinking Venture: Unorthodox Wisdom with Precursor’s Charles Hudson
Oct 14, 2025
In a compelling discussion, Charles Hudson, Founder and Managing Partner at Precursor Ventures, shares his unorthodox approach to venture capital. He emphasizes sourcing overlooked founders, focusing on potential rather than pedigree, and adapting to a fast-paced market. Charles reveals his strategies for evaluating early-stage talent and his thoughts on nurturing long-term relationships with founders. Additionally, he critiques the emphasis on quick returns in pre-seed funding, encouraging patience for sustainable growth and genuine customer signals.
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Early-Stage Arbitrage Is Vanishing
- Venture is squeezing out easy arbitrage in early-stage investing, making consensus founders extremely competitive to back.
- Precursor wins by finding overlooked founding talent outside standard algorithmic signals and networks.
Seek Pre-Product, Network-Detached Founders
- Find founders at idea stage who haven't signaled or benefited from network effects and partner early.
- Back outsiders like recent international arrivals or first-time managers and help them grow into leadership roles.
Underwrite Potential, Not Pedigree
- De-emphasize pedigree and emphasize a founder's future potential when underwriting pre-seed deals.
- Screen for candidates who lacked prior management chance but show drive and product insight.