08 Takeaways: Charles Hudson, Precursor Ventures: macro, team vs market, fund size vs. outcomes

First Funders

Join Shaherose & Aamir as we reflect on our conversation with Charles Hudson of Precursor Ventures.

Highlights:

• Don’t forget the macro: Government regulations can lead to massive opportunities or failures. We discuss case studies of companies like Samsara, Movtive (fka KeepTrucking), Republic, and Zum, showing how regulatory shifts led to category-creating opportunities. Charles’ worst investment was wiped out due to changes in government regulation.
• Team vs market: We discussed the interplay between having the right team, idea, and timing for startup success. Charles evaluates opportunities 70% team and 30% idea. Both Aamir and I take a more balanced approach than Charles does.
• Fund size vs. outcomes: Reflecting on the past learning, "Your fund size is your strategy." We wonder what role that played in Charles’ decision to invest in the Athletic, later acquired by the NY Times for $550M.

Links:

• Follow Charles Hudson on Twitter: @chudson
• Read Charles’ blog on Substack
• Learn more about Precursor Ventures: Precursor Ventures
• Connect with Charles Hudson on LinkedIn: Charles Hudson

Connect with Us:

• Follow the First Funders Podcast
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• Twitter/X: @shaherose | @avirani
• Email us with feedback and suggestions on topics and guests

Disclaimer: This is for information purposes only. This is not investment advice.

• (00:00) - Introduction and Format Change
• (00:39) - The macro matters
• (03:40) - Learning from past investments while staying open minded, what about bias?
• (04:12) - Team vs. Market
• (10:36) - Fund size vs outcomes
• (16:17) - Investors don't know it all