Precursor’s Charles Hudson believes founders should test their investors

Nov 18, 2024

Charles Hudson emphasizes testing investors and building trust to foster honest entrepreneur-investor relationships.

Precursor’s Charles Hudson believes founders should test their investors

: Charles Hudson of Precursor Ventures advises founders to test investors with minor issues to gauge their reactions and establish trust. He highlights the importance of emotional intelligence and open communication in building strong entrepreneur-investor relationships. Hudson stresses that trust must be earned and both parties should engage in honest feedback. By fostering trust, he believes startups can better navigate challenges and grow effectively.

Charles Hudson, managing partner of Precursor Ventures, suggests that entrepreneurs should evaluate their investors by observing their reactions to minor issues. This approach helps identify problem-solvers and establishes early trust, preventing adverse situations where founders hesitate to report problems due to fear of negative reactions.

According to Hudson, trust and emotional intelligence are vital in successful entrepreneur-investor relationships. By focusing on honest communication, Hudson argues that this openness can aid in resolving challenges and encourages a feedback culture beneficial to both parties.

He emphasizes that trust must be earned rather than assumed in any relationship, including professional ones. Founders should look for signs of resilience and commitment, traits Hudson views as indicative of how well they might manage the ups and downs of startup life.