ACQ2 by Acquired Everything you need to know about Pre-Seed (with Charles Hudson of Precursor Ventures)
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Mar 24, 2020 
Charles Hudson, the dynamic founder of Precursor Ventures, shares his journey of navigating the emerging realm of pre-seed investing. He discusses the evolution of funding rounds below a million and the challenges founders face in this landscape. Hudson emphasizes the importance of professional signals in venture success and highlights his unique approach to evaluating investments. He also reveals insights on building diverse teams and maintaining strong relationships in venture capital while adapting to current trends. A must-listen for aspiring entrepreneurs!
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Pre-Seed Emergence
- Seed investing emerged as institutionalized angel rounds.
- Now, pre-seed is emerging as an earlier stage for pre-revenue, pre-traction companies.
Seed Fund Evolution
- Seed funds grew, requiring larger checks and later-stage investments to achieve returns.
- This created a gap for smaller, earlier-stage companies needing less capital, leading to the rise of pre-seed.
Seed Fund Math
- A $100M seed fund targeting 3x returns requires $4B in exits, implying four unicorns.
- With ~45 companies, one in ten must become a unicorn, making high-signal investments attractive.