Charles HudsonFounder and Managing Partner, Precursor Ventures

Are investors overlooking consumer-focused companies?

29 Sept 2025 · 1 min

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Charles Hudson (speaker) describes that consumer-focused companies in his portfolio — notably consumer software and consumer packaged goods (CPG) firms — are among the best-performing holdings. He argues these companies often cannot assume easy access to capital, which forces them to build businesses that can be profitable while still growing; that discipline produces interesting, resilient companies and helps explain their outperformance.

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Mm. And I look in our portfolio, I look at some of our consumer, both consumer software and CPG companies. They're some of the best performing companies in our portfolio. And I think the irony is, for many of those companies, access to capital is not assumed. So you have to build a business that, if need be, can be profitable and still grow. And I think it enforces a unique discipline on those companies to both build real businesses, but not real businesses that are small, real businesses that end up being interesting. And so I'm not surprised that those companies outperform. They have it tougher.