Driving Alpha Charles Hudson of Precursor Ventures: Navigating AI, Inclusion, and Early-Stage VC
Jan 29, 2025
Charles Hudson, Managing Partner of Precursor Ventures, shares insights from over 15 years in venture capital, making him a key player in the seed-stage community. He delves into his transition from entrepreneurship to investing, emphasizing the importance of diversity and inclusion in funding. The discussion covers evaluating startup founders with a checklist approach and the geographical trends in investments, especially in high-density areas like California and New York. Charles also navigates the complexities of AI investments and the evolving dynamics of pre-seed funding.
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Early Career at Internet & In-Q-Tel
- Charles Hudson started his career as an entrepreneur and interned at Excite during the early internet days.
- He then joined In-Q-Tel, gaining unique experience investing in startups for the US government with security clearances.
Portfolio Size: 50-100 Companies Optimal
- LPs often resist large portfolios because they worry about diluted returns and small team capacity.
- Hudson believes an optimal fund portfolio consists of 50 to 100 companies for diversification without losing focus.
Success Stories: The Athletic & Bobby Baby
- The Athletic was Precursor's first fund investment with founders who persevered despite challenges.
- Bobby Baby overcame an FDA shutdown and is on a path to being one of Hudson's best investments.