Charles HudsonFounder and Managing Partner, Precursor Ventures

Are acquihires the new norm in venture?

23 Jun 2025 · 0 min

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Charles Hudson sees acquihires under $20 million becoming common in his portfolio, where investors often return little capital while founders get paid out. He argues these modest exits beat holding on, and founders should move on or try again later.

And what the article describes. I'm already seeing it in our portfolio. We have a handful of companies that are being acquired for under $20 million where we should give back most, if not all of our money. The founders will get some money. It's not a huge win, but they spent five years of their life on this and it's, it's not going to be OpenAI or SpaceX or anthropic or some huge win. And I think the history of venture is like, those businesses should get sold. People should go find a different use for their time and maybe try again later.