Charles HudsonFounder and Managing Partner, Precursor Ventures

Should startups opt for smaller funding rounds?

31 Jul 2025 · 0 min

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Charles Hudson discusses early impressions about startup funding sizes, noting that while million-dollar checks and rounds exist, many founders and companies sometimes prefer smaller rounds. He suggests some businesses would benefit from taking less capital to impose helpful constraints.

And when I tell people sometimes, hey, we write million dollar checks, they're like, to whom? I'm like, there are people or million dollar rounds. Or I'm like, look, there are people out there who want smaller rounds. They are not the norm and they are not the dominant force in the market. And I meet a lot of companies. I'm like, this is a business that I think would do better with less capital. It would force more constraints. They would.