Charles Hudson Flags 3 Funding Mistakes After 500+ Startup Bets

2 articles · Updated · TechCrunch · Jul 9

Charles Hudson said early-stage founders most often hurt fundraising by chasing inflated valuations, skipping diligence on investors, and pursuing venture capital without confirming their business fits the model.
Hudson, founder of Precursor Ventures, warned that oversized rounds can trap startups under expectations they may not meet, leaving founders tied for years to investors who are a poor fit.
He urged founders to vet VCs by speaking with portfolio companies and checking claims about hiring, go-to-market help, and network access, arguing investors are courting founders too.
More than a decade into early-stage investing, Hudson said today’s market is tougher because startups are increasingly judged against the fastest-growing AI companies, making even doubling or quadrupling growth look merely adequate.