Venture investors often pick startups based on whether famous VCs like Sequoia already backed them, using big names as a shortcut instead of doing real work. Precursor Ventures bets on truly unknown companies instead, arguing that real value gets missed when everyone chases the same consensus picks.
If I told a lot of the people I talked to who evaluate venture funds, you have two choices. Someone tells you there's a company you've heard nothing about and Sequoia's in it, and there's a company you've heard nothing about and Sequoia's not in it, most people would be like, well, I want to be in the company that Sequoia's in. And so the thing about fundability is fundability shows up today. Being able to say we, we are co-invested with these people, this person who spun out of this research lab. Yeah, it's expensive, but look at all these other really fancy VC names that are in this deal with us. That's why you should feel good about that. Precursor Ventures is like, hey, this is a company you've never heard of and you will have never heard of for 7 years.
