Charles HudsonFounder and Managing Partner, Precursor Ventures

Is the venture capital middle class disappearing?

4 Jun 2025 · 0 min

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Charles Hudson examines whether the venture capital middle class is disappearing. Series A funds got hit hard by higher valuations, making it tougher for their companies to raise follow-on rounds. Fewer managers will operate at that stage as later-stage benchmarks climb.

There's no reason to put more money in and push for that goal. I think a lot of the funds that specialized around Series A for the last handful of years were really rocked by coming in at higher valuations. And so when you think about funds that aren't able to raise subsequent rounds, we're going to see less folks who play around there. So that probably plays into that well. Of like, it's just going to be harder to get seen by people because their benchmarks are just so much higher than they were prior. It is.