Charles HudsonFounder and Managing Partner, Precursor Ventures

The Divergence in VC Deal Types #entrepreneur #stitch #podcast #venturecapital

18 Mar 2025 · 0 min

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Charles Hudson discusses how venture capital is splitting into two paths: emerging managers with smaller funds struggle with high entry prices and bad picks, while larger multistage firms can afford expensive deals and support portfolio companies through downturns.

I think that those are the outcomes that they need, so it makes sense for them to jump into those companies. Whereas I think of, I don't know, emerging managers were on fund one, fund two. Those swings and misses are very painful because you come in at such a high price. We're seeing this divergence and this split out in types of deals that folks are looking at just given how big their firms are. There are deals that come in at prices that larger multistage firms are best positioned to.