This week, TechCrunch held a Live Q&A Zoom call with Charles Hudson, Managing Partner at Precursor Ventures as a part of their ExtraCrunch Live Series. Charles is a serial entrepreneur, previously founding Bionic Panda Games, 3rd Power LLC, and CH3 Media Holdings. Prior to founding Precursor Ventures he served as a Partner at Uncork Capital and as a Senior Associate at In-Q-Tel, the venture arm of the CIA. He is currently a Lecturer at Stanford’s GSB and a Board Member of multiple organizations, including H2, LightSide Games, Populus, and the National Venture Capital Association (NVCA).
Precursor Ventures | Precursor Ventures
Precursor Ventures is a classic seed stage venture capital firm investing in long-term relationships with founders we…
Below is a recap of selected questions and answers from the interview. Please note, these are not direct quotes — they are paraphrases from notes taken while listening to the interview. Precursor has not reviewed any content for accuracy and you should go to their website directly to understand their views. Any misstatements are not intentional.
#1 — COVID and Limited Partners (LPs) Risk Appetite
Do you have general notes on the LP market from the last few months and their risk appetite ?
I talk to LPs all the time and I have heard both shocking and scary things. I can share some anecdotes to keep them anonymous. The most fascinating one is that I talk to a lot of university endowments and they’re not sure if they will keep the income from student housing, meal plans, etc. in the Fall. Endowments are thinking the financial support that they need to provide may be orders of magnitude larger than in the past. The only place you can get that from is the liquid part of the portfolio (equities) which has a lot of volatility. A lot of people on VC Twitter are sharing stuff about inability to invest without being face to face but this is HUGE for LPs too. We’ve…