Charles HudsonFounder and Managing Partner, Precursor Ventures

The Emotional Dynamics of Follow Ons #venturecapital #founder #investing #ai

24 Mar 2025 · 0 min

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This YouTube video (by Charles Hudson, Mar 24, 2025) explores the emotional and practical dynamics of follow-on venture investments. The provided excerpt captures an investor perspective: underwriting may not be central at some firms, high-touch relationships with founders can create information asymmetries, and fund managers sometimes feel compelled to follow on (especially when a fund has a pre-allocated follow-on pool/percentage).

I don't know as much about underwriting at Serious C. That's not what you get paid to do. Yeah. Even just the point you raised about founders, you could have an incredibly high touch relationship with a founder and know so much about the business. And maybe the information that you learn, it's maybe not the best thing to follow on. I know there's a lot of fund managers, they probably just feel like they've already crossed the line and they can't go back. And they've supported them so much so they have to follow on. I think that happens when you've already allocated a specific pool and percentage of your fund because you know you're going to use it.