Charles HudsonFounder and Managing Partner, Precursor Ventures

Is the Startup Funding Model Broken? 📉

14 Aug 2026 · 1 min

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0:32

Charles Hudson says venture funding is broken. Series A was supposed to fund companies that proved product-market fit, but now only five to ten companies per year get real support. The rest are left behind.

I think everything feels broken. Uh, I feel like pre-seed and Series A labels feel broken. Series A feels broken. I think it used to be that the goal of a Series A investor was to help take this very large mass of seed and pre-seed stage companies and anoint the ones that had product market fit and give them more capital and help them grow. And now it feels like we live in this weird world where there's only 5 to 10 companies that feels like matter every year.

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