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

(00:38:33) - What to look for in founders

(00:42:38) - How do you narrow your funnel of founders you’re interested in investing with?

(00:54:40) - What’s your view on AI as an investable industry?

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