Charles HudsonFounder and Managing Partner, Precursor Ventures

Is venture capital always the answer for startups?

3 Dec 2025 · 1 min

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Charles Hudson argues that venture capital (VC) is not always the right path for every startup. He describes advising founders that their businesses may not fit the VC trajectory to avoid wasted effort raising capital and a potentially miserable operating experience, noting a recent shift where some founders are less interested in VC.

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I probably in the last year have told more people, I just don't see how you get on the VC trajectory with this business. And it lands better than it did a few years ago. Like, how dare you say something mean about my company? I'm like, I'm not trying to say something mean. I'm trying to save you from a bunch of wasted effort raising money. And then if you are successful, a miserable experience running a business that isn't suited for the type of capital you raised. And I think in the last few years, I think there has been a subtle evolution. And I think some of this is there are founders who are less interested in venture capital in some cases. So telling somebody that our capital isn't the right fit for their business lands differently when the person's like, oh, I'm not even sure I'd want it if you gave it to me.