Charles HudsonFounder and Managing Partner, Precursor Ventures

Funds need to be legible to LPs

1 Oct 2026 · 1 min

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Charles Hudson argues venture funds must be legible to their limited partners. Super-compounder strategies focused on recognizable companies are easier to evaluate, while funds holding many lesser-known solid companies demand far more time and effort from LPs to assess. A single person managing all private-investment responsibilities creates operational strain that may be unrealistic.

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I think funds have to be legible to LPs. And I think the challenge with some of the models that Rob mentioned is they're new and unproven. So if you do the super compounder thing, you end up in the companies that LPs have heard about from the other big funds that they've read about in the news and whether you own, you know, 1 basis point in those companies or whatever, you're, you're on the cap table and the things that you're in feel of the moment. If you have lots of other great companies that are maybe doing well on the business metrics, You actually need limited partners who have the energy, time, and focus to go deep to get to understand those companies. And if you're one person responsible for all privates, maybe that's too much to ask of that individual.