Charles HudsonFounder and Managing Partner, Precursor Ventures

Strategic Small Investments #investing #venturecapital #tech #siliconvalley

4 Apr 2025 · 0 min

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0:28

A short excerpt of a YouTube video in which Charles Hudson explains why he sometimes writes $50k checks into startups — often driven by round dynamics and founders' preferences to include him on the cap table even when they don't expect additional support. He contrasts larger check sizes with smaller strategic investments and mentions repeat founders who request a passive cap-table seat.

Like. And in most cases where I've written 50k checks, it's because of the round dynamics. I've wanted to write two 50 or 500 and the person's told me, I don't have that for you. I have less, and I'd rather be in the company than not in the company. And that's been sort of the trade off I've made. This is why I've been like, very resistant to sort of saying, well, we'll just throw in 25k. Unless me, as one specific example, sometimes we do have repeat founders who are just like, I don't plan to ask you for anything. I have zero expectation. I simply would like you on the cap table.