27 min

Investment Criteria and VC Funding Shifts in Software Startups Own Your Zone Podcast

    • Investing

Charles Hudson is the Founder and Managing Partner of Precursor Ventures, an early-stage venture capital firm focused on investing in the first institutional round of investments for promising software and hardware companies. He is also the Board Chair of the National Venture Capital Association, which funds America’s most innovative entrepreneurs. Before launching Precursor, Charles was a Partner at SoftTech VC, where he focused on identifying investment opportunities in mobile infrastructure. He also identified valuable investment opportunities for the CIA at In-Q-Tel.
In this episode… Venture capital investments experienced the highest increase in 2022, with company valuations outpacing this surge. Additionally, in 2022, 65% of US-issued patents were software-related inventions. What are the most pervasive VC trends in technology, and how can you position your startup as a favorable investment?
In the past, public market investors have been attracted to SaaS and other technology businesses, leading VC firms to invest aggressively in private tech companies, accelerating their revenues by 20 times more than traditional private company revenue. Yet investors have realized that building a revenue-generating private business with high margins is risky — significantly diminishing funding. According to operator, investor, and VC expert Charles Hudson, intellectual property patents are crucial in differentiating private companies from the masses and protecting and documenting inventions. By leveraging patents, private startups can maximize their value. You can also lower your early-stage company’s risk for investors by remaining transparent when establishing contracts. 
In today’s episode of Own Your Zone Podcast, JiNan Glasgow George welcomes Charles Hudson, Founder and Managing Partner of Precursor Ventures, to discuss VC trends in the software landscape. Charles addresses how AI impacts investments in software companies, investors’ ideal due diligence criteria for early-stage businesses, and his approach to managing a VC fund.

Charles Hudson is the Founder and Managing Partner of Precursor Ventures, an early-stage venture capital firm focused on investing in the first institutional round of investments for promising software and hardware companies. He is also the Board Chair of the National Venture Capital Association, which funds America’s most innovative entrepreneurs. Before launching Precursor, Charles was a Partner at SoftTech VC, where he focused on identifying investment opportunities in mobile infrastructure. He also identified valuable investment opportunities for the CIA at In-Q-Tel.
In this episode… Venture capital investments experienced the highest increase in 2022, with company valuations outpacing this surge. Additionally, in 2022, 65% of US-issued patents were software-related inventions. What are the most pervasive VC trends in technology, and how can you position your startup as a favorable investment?
In the past, public market investors have been attracted to SaaS and other technology businesses, leading VC firms to invest aggressively in private tech companies, accelerating their revenues by 20 times more than traditional private company revenue. Yet investors have realized that building a revenue-generating private business with high margins is risky — significantly diminishing funding. According to operator, investor, and VC expert Charles Hudson, intellectual property patents are crucial in differentiating private companies from the masses and protecting and documenting inventions. By leveraging patents, private startups can maximize their value. You can also lower your early-stage company’s risk for investors by remaining transparent when establishing contracts. 
In today’s episode of Own Your Zone Podcast, JiNan Glasgow George welcomes Charles Hudson, Founder and Managing Partner of Precursor Ventures, to discuss VC trends in the software landscape. Charles addresses how AI impacts investments in software companies, investors’ ideal due diligence criteria for early-stage businesses, and his approach to managing a VC fund.

27 min