Charles HudsonFounder and Managing Partner, Precursor Ventures

Caution for Founders Selecting the Right Fund Manager #ai #venturecapital #investing

21 Mar 2025 · 0 min

Watch on YouTube

0:28

Charles Hudson warns founders to avoid fund managers treating investing as a hobby or side gig. Managers with competing job demands often become unavailable, leaving founders without their lead investor when they need support most. Better to have them as supporting capital, not your lead partner.

What would you say for founders as they're diligencing? Maybe different fund managers to lead their rounds? Like, what are the flags that you'd say are there to kind of signal? Maybe they're not? Best long term partners.
It's probably a bit self serving, but I would say someone who's doing this as a hobby or as a side project, who's leading around, there's a chance that the demands of their day job will pick up or they decide they want to do this. And then the person who wrote you the biggest check and ledger round is sort of out of picture. So I think the better role for those folks is a supporting capital. But founders got to make their own decisions.