Latest news with #VC
Yahoo
a day ago
- Business
- Yahoo
The new math: why seed investors are selling their winners earlier
Charles Hudson had just closed his fifth fund several months ago – $66 million for Precursor Ventures – when one of his limited partners asked him to run an exercise. What would have happened, the LP wondered, if Hudson had sold all his portfolio companies at Series A? What about Series B? Or Series C? The question wasn't academic. After two decades in venture capital, Hudson has been watching the math of seed investing change, maybe permanently. LPs who've previously been patient with seven-to-eight-year hold periods are suddenly asking questions about interim liquidity. 'Seven or eight years feels like a really long time' to LPs right now, says Hudson, even though 'it's always been seven or eight years.' The reason: a steady stream of venture returns in recent years — returns that made long hold periods acceptable — has largely dried up. Coupled with the availability of other, more liquid investment options, many backers of very early-stage VC are demanding a new approach. The analysis his LP requested revealed an uncomfortable truth, says Hudson. Selling everything at the Series A stage didn't work; the compounding effect of staying in the best companies outweighed any benefits from cutting losses early. But Series B was different. 'You could have a north of 3x fund if you sold everything at the B,' Hudson discovered. 'And I'm like, 'Well, that's pretty good.'' Beyond pretty good, that realization is reshaping how Hudson thinks about portfolio management in 2025. Though now a veteran investor – Hudson has spent 22 years in VC between Precursor, an eight-year run at Uncork Capital and another four years at In-Q-Tel earlier in his career – he says investors in very young companies are being forced to think like private equity managers, optimizing for cash returns alongside the home runs that, if they're lucky, define their careers. It's not an easy mental change to make. 'The companies where there's the most secondary interest are also the set of companies where I have the greatest expectations for the future,' says Hudson. It's not just Hudson; his thinking about secondary sales reflects broader pressures reshaping the venture ecosystem. Hans Swildens is the founder of Industry Ventures, a San Francisco-based fund of funds and direct investment firm with stakes in 700 venture firms, and he told Techrunch in April that venture funds are 'starting to get savvier about what they need to do to generate liquidity.' In fact, Swildens is seeing venture funds hire full-time staff members specifically to pursue alternative liquidity options, with some seed managers dedicating months to 'manufacturing liquidity from their funds.' Though this reshuffling of priorities extends far beyond any single fund, the pressure is particularly acute for smaller funds like Precursor, a traditional seed-stage fund that prides itself on backing unconventional founders like Laura Modi of ByHeart baby formula (a solo founder in a regulated industry with no prior experience) and Doktor Gerson of Rad AI (whose previous startup had failed). While firms with mega-funds like Sequoia and General Catalyst can afford to wait for $25 billion outcomes, smaller funds need to be more tactical about when and how they harvest returns. Perhaps nowhere is the shift more visible than in Hudson's relationships with limited partners. University endowments, once the most coveted LPs in venture, are now grappling with unforeseen challenges from the Trump administration. Harvard, of course, is the poster child here, with federal investigations into its admissions practices, threats to research funding tied to compliance issues, and ongoing scrutiny of its substantial endowment amid calls for universities to increase their annual spending requirements or face taxation. Hudson says that based on his conversations with LPs inside these organizations, they've never believed more in the power of venture, yet they've also never felt more hesitant about making 10- to 15-year illiquid commitments. The result is a more complex LP base with competing needs. Some want 'as much money back as soon as possible, even if that's a suboptimal outcome in the long term,' says Hudson. Others prefer that Hudson 'hold everything to maturity, because that's what's going to maximize my returns.' Navigating these demands requires the kind of portfolio management sophistication that seed investors haven't traditionally needed, which Hudson views with some ambivalence. Venture, he says, is starting to feel a lot less like an art and something that 'feels a lot more like some of these other sub-asset classes in finance.' Hudson isn't without hope, he adds, but he is clear-eyed about what's changing on the ground, as well as the opportunities those changes create. As funds grow larger and deploy more capital, they're becoming necessarily more algorithmic, looking for 'companies in these categories, with founders from these schools with these academic backgrounds who worked at these companies,' he says. The approach works for deploying large amounts of capital efficiently, but it misses the 'weird and wonderful' companies that have defined Hudson's best returns and kept Precursor in the game. 'If you're going to hire people just off a resume screener tool,' he says, 'you're going to miss people who maybe have really relevant experiences that the algorithm doesn't catch.' You can hear our full interview with Hudson via TechCrunch's StrictlyVC Download podcast. New episodes come out every Tuesday.
Hans India
3 days ago
- Health
- Hans India
Yoga integral part of our cultural heritage
Ongole: Andhra Kesari University vice-chancellor Prof DVR Murthy said that yoga is an integral part of the Indian cultural heritage. He participated in a preparatory event for International Yoga Day celebrations and observed yoga sessions conducted at the AKU premises on Wednesday. He called upon AKU employees and staff to participate in the Yoga Day programme in large numbers and make it successful. He mentioned that International Yoga Day will be organised in Visakhapatnam on the 21st of this month, proceeding with the theme 'One Earth, One Health'. The VC emphasised that yoga provides a healthier and more peaceful life. He appreciated the yoga master trainer during the occasion and encouraged broader participation in yoga practices as part of the university's commitment to promoting wellness and cultural values. University college principal Prof Rajamohan Rao, CDC Dean Prof Somasekhar, NSS Coordinator Dr Mande Harsha Preetam Dev Kumar, PD Syed Aseefuddin, along with teaching and non-teaching staff and students participated in the programme.
Forbes
4 days ago
- Business
- Forbes
Why 94% Of Billion-Dollar Founders Rejected These VC Commandments
When Should You Say No to VC Rules? getty A top 20 VC firm, a16z, shared '16 Commandments' for raising equity in 'challenging' markets. The reality is that for ~99.9% who never get VC, every market is challenging. So how useful are these VC commandments? If you're building a venture, should you follow these VC commandments – or are they only for the 'lucky' few who get VC – 'lucky' because approximately 80% of those who do get VC are said to fail. Here's the reality: 94% of billion-dollar entrepreneurs avoided or delayed VC and did not have to follow these 'commandments.' But it is worth knowing what a top VC recommends. The advice can be grouped into three categories: These apply mainly to the 0.1% of ventures that fit the VC mold. If you're in that rare group, this advice may help. But if you're not, tread carefully. A few of a16z's rules offer useful wisdom for all entrepreneurs – but even here, many billion-dollar founders took a different path to apply them smarter. Some commandments may sound helpful but come with hidden risks – especially for founders who don't have elite backers or a soft landing if things go wrong. MY TAKE: VC wisdom works for a few. Entrepreneurial wisdom works for all. What's optimal for VCs may not be right for you. While Silicon Valley has made extraordinary contributions – and promoted them vigorously – the rules that work for a few may not work for you.
Coin Geek
4 days ago
- Business
- Coin Geek
Navigating entrepreneurship and VC with Brad Feld
Homepage > Videos > Navigating entrepreneurship and VC with Brad Feld Serial entrepreneur Brad Feld joins the CoinGeek Weekly Livestream to discuss the secret to a thriving business and what is lacking in the blockchain space. Click here to read the full article.
TechCrunch
5 days ago
- Business
- TechCrunch
7 days left to save up to $210 on TC All Stage passes
Final countdown — less than 1 week to save up to $210 on TechCrunch All Stage passes! Founder or investor, this is your last chance to save big before June 22 at 11:59 p.m. PT. Founders, sharpen your edge. Investors, meet the next rocket ships. On July 15, startup and VC leaders will gather at SoWa Power Station in Boston for TC All Stage — TechCrunch founder-first summit built for startups scaling from seed to IPO. This is where traction becomes breakout growth. Secure your pass now with up to $210 in savings — and give your startup a competitive edge. This offer ends June 22 at 11:59 p.m. PT! Why attend TC All Stage From early traction to sustained scale, TC All Stage arms founders with critical insights from top-tier VCs and growth leaders — delivered through tactical breakouts, focused roundtables, and high-impact networking. Image Credits:Halo Creative Breakouts for every phase of growth Early-stage founders — learn what it really takes to launch at the Foundation Stage. Investors and seasoned operators will dive into topics like: How VCs actually evaluate pre-seed startups AI MVPs: When to build smart, when to pause TAM vs. reality: How breakout companies redefine markets Building pitch decks that close checks Scaling past Series A? Enter the new Scale Stage — a full-day track designed for growth-stage leaders. Get real strategies for: Building high-growth companies that last Raising a Series C and beyond Getting IPO-ready & hitting $10M+ ARR Meet the experts behind the breakouts Our speaker lineup continues to grow — visit the site for new additions. Techcrunch event Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW Deep-dive roundtables, real answers Take a seat at exclusive, small-group roundtables led by scaling experts. Get tactical advice, share challenges, and connect with peers facing the same make-or-break growth moments. Founder + investor networking that moves the needle Meet one-on-one or in curated groups with founders and investors ready to build. Make connections that could lead to your next round, partnership, or turning point. Go beyond the summit Extend your experience during 'TC All Stage Week' — explore Side Events across Boston that keep the conversations and momentum going. Watch the pitch showdown The live event, So You Think You Can Pitch, gives you front-row access to startup pitches and VC feedback. Learn what makes a pitch land — and how to refine yours to win funding. Save your seat now — or pay more next week Whether you're scaling your startup or sourcing your next investment, All Stage is built to accelerate your goals. Save up to $210 before June 22 — these early rates won't return. Lock in your pass now.
