Charles HudsonFounder and Managing Partner, Precursor Ventures

Is seed math broken beyond repair?

16 Jun 2025 · 0 min

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Charles Hudson argues that there is an imbalance in the startup funding ecosystem: the number of pre-seed and seed-stage companies has grown faster than available Series A capital, meaning a smaller percentage of companies will 'graduate' to Series A purely due to funding math. He suggests reducing the number of seed companies is not realistic, implying other solutions are needed.

Think we are in a world where a smaller percentage of companies will graduate because of math, because we've created many more pre seed and seed stage companies in search of Series A rounds, and we have not created a similar amount of Series A capital to fund those rounds. So there's an imbalance. And the only way for the imbalance to get solved is we either need fewer seed companies. Not going to happen.