StrictlyVC Download VC Charles Hudson on the new LP timeline
Jun 17, 2025
Charles Hudson, Founder and Managing Partner of Precursor Ventures, shares insights into early-stage investing and the evolving landscape of venture capital. He discusses his data-driven approach to portfolio management and the impact of recent market volatility on LP expectations. Hudson highlights the importance of adaptability in light of liquidity challenges and emphasizes the shift towards sustainable growth over inflated valuations. He also draws parallels between today's AI advancements and the early internet, advocating for thoughtful investment strategies.
AI Snips
Chapters
Transcript
Episode notes
LPs Reevaluating Seed Fund Hold Times
- Seed funds inherently have long hold periods, often seven to eight years or more.
- Recent market volatility is causing LPs to rethink their tolerance for long illiquid investments.
Use Friendly Secondary Sales
- Focus on secondary liquidity through friendly transactions where founders approve share sales.
- Selling a portion of shares at later rounds can provide interim liquidity without giving up all future upside.
Optimal Exit Timing for Seed Funds
- Selling all shares at Series A undercuts the upside from top performers.
- Partial selling at Series B can yield strong returns and provide liquidity after 5-7 years.