Charles HudsonFounder and Managing Partner, Precursor Ventures

Are We Letting Valuations Kill Good Investing?

12 Jul 2025 · 1 min

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Charles Hudson argues that a good company isn't necessarily a good investment. If the biggest exits are ten or a hundred times larger than we thought, paying ten or a hundred times more to get into winners makes sense. What matters most is accessing the winners, not the valuation you pay.

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A long time ago, someone told me not every good company is a good investment. And so I think about that a lot. I think the other thing that's it depends on where you land. You know, we talked before about the Vencap piece, which is like, hey, if you really believe we're going to a world where exit scale for the winners is in order of magnitude or 2 larger than what we previously believed, you can pay an order of magnitude or 2, maybe not 3, as we're seeing in some cases on the entry price, provided that you get into winners. And I talked to one LP who was like, look, what matters is the scale of the winners. If.