Charles HudsonFounder and Managing Partner, Precursor Ventures

Are we addicted to the 'big name' venture consensus?

4 Mar 2026 · 1 min

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Venture capital chases big names like Sequoia, treating co-investment from prestigious firms as a credibility signal that attracts more money. Startups without marquee backers stay invisible for years, regardless of merit, creating a self-reinforcing cycle where the signal matters more than the actual company.

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If I told a lot of the people I talked to who evaluate venture funds, you have two choices. Someone tells you there's a company you've heard nothing about and Sequoia's in it, and there's a company you've heard nothing about and Sequoia's not in it, most people would be like, well, I want to be in the company that Sequoia's in. And so the thing about fundability is fundability shows up today. Being able to say we, we are co-invested with these people, this person who spun out of this research lab. Yeah, it's expensive, but look at all these other really fancy VC names that are in this deal with us. That's why you should feel good about that. Versus like, hey, this is a company you've never heard of and you will have never heard of for 7 years.