Charles HudsonFounder and Managing Partner, Precursor Ventures

The Struggle To Play Your Own Venture Game

9 Jan 2026 · 1 min

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Charles Hudson (speaker) argues that many investors are currently focused on AI, which shapes deal interest; founders and fund managers must recognize this market reality. He recounts an anecdote where an investor praised a non-AI company but declined because he is "only doing AI right now," concluding that funds must either play the AI game or have high conviction and stay solvent so they can capitalize when attention returns to other businesses. The clip emphasizes portfolio diversification, founder understanding of investor trends, and the necessity of fund survival to capture future opportunities.

Chapters

I think what you also have to accept is like, you need founders who understand this too. I introduced one of our portfolio companies to a prospective investor. He goes, there's nothing wrong with this company. It's exceptional. But I'm only doing AI right now. It's funny I tell you, like, you can't tell somebody what they should be excited about. I mean, you can try. I don't think that's very effective. At some point you have to accept right now AI is the game on the field. And if you're not going to play that game, you have to have high conviction and then you have to, you know, remain solvent as a fund. You have to be able to like, stay in business. I look at our portfolio, we have plenty of non AA businesses that are doing great. I believe at some point attention will come back to those businesses. But we have to be around and alive as a fund when that happens. Otherwise we don't get the prize.