How To Fundraise As A Solo Founder with Charles Hudson (Precursor Ventures)

Solo Founders 45min 6 min #6
How To Fundraise As A Solo Founder with Charles Hudson (Precursor Ventures)
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Summary

  • Charles Hudson, a solo GP at Precursor Ventures who has invested in over 500 companies, makes a detailed case for why solo founding is underrated and why the conventional wisdom that startups require co-founders is often wrong.
    • He argues that the ideal — two deeply trusted, well-matched co-founders — is rare, and that mismatched co-founder teams cause enormous damage, with 25–30% of his portfolio companies losing a co-founder before Series A.
    • He would consistently choose a talented solo founder over a mismatched co-founder team, and his preference for solo founders has grown over time.

Why the co-founder consensus is wrong

  • The “team sport” analogy is misleading
    • People say startups are a team sport, but Charles points out that tennis and golf are also “team sports” — in singles, no one serves or putts for you. You make your own shots.
    • Soccer, where you’re only as good as your weakest player, is a fundamentally different model. Startups are more like singles tennis.
  • Denominator delusion
    • Investors pattern-match on successful companies with co-founders but ignore the denominator: huge numbers of co-founded companies fail specifically because the team didn’t get along.
    • Co-founder breakups create dead equity, cap table damage, and massive distraction — often worse than starting solo.
  • Myth: “It’s too much work for one person”
    • Charles distinguishes between being a solo founder and being a company with only one employee. They are not the same thing.
    • A solo founder can and should build a team around them — they just don’t give away co-founder titles and equity to do it.

What actually goes wrong with co-founders

  • Dead equity and cap table damage
    • Charles has seen co-founders leave with 20–25% equity, making it nearly impossible to attract new investors.
    • Fixing these situations requires convincing departed co-founders to stay on the cap table until a buyout can be arranged — work that creates zero value for the company.
  • Technical co-founders are more likely to depart
    • Charles’s observation: technical co-founders who can’t manage people and aren’t senior enough to be architect/CTO-level often find their long-term role at risk.
    • Some are individual contributors who’d rather start their own thing than be a small piece of someone else’s puzzle.
  • Rivalry and resentment
    • Rivalry: a non-CEO co-founder decides they should be CEO. This is extremely hard to resolve and often ends in succession-style conflict.
    • Resentment: the more pernicious problem. Small perceived slights accumulate into a narrative that the resented party often doesn’t even know is building. Once resentment takes hold, Charles has almost never seen teams recover.
  • Directional misalignment
    • Companies evolve and pivot. One co-founder may be attached to the original product or mission while the other sees the need for change.
    • Charles is actively dealing with a case where a CEO wants to pivot within the same category and the technical co-founder is vehemently opposed — the CEO may need to part ways with him.
  • Late-joining co-founders create weird dynamics
    • Some companies add “co-founders” years in or after a pivot. The title signals something specific to employees, but the equity and power don’t match, creating a hard-to-navigate dynamic.
    • Charles has seen cases where investors required a co-founder as a condition of investing, and it went poorly — in one case, the title itself was so stressful the person would have stayed on as CTO but left because of the co-founder title.
  • Early co-founder breakups are common and should be destigmatized
    • Somewhere between a quarter and a third of founders Charles has spoken with had a co-founder for only a few weeks or months.
    • He’s far less concerned about early breakups than late ones — parting ways early is less expensive and less traumatic.

Advantages of solo founding

  • Authorship
    • Charles considers this the most underrated advantage. A solo founder is the sole author of the company’s story, with a specific vision in mind and the drive to pursue it relentlessly.
    • This mirrors how most great creative works are structured: one director, one principal, one author — not co-authors.
    • He experienced this himself as a solo GP: he had a specific vision for the kind of firm he wanted to build and knew it had to be his to create.
  • Single decision-maker
    • When hard decisions arise — pivots, principle adherence, strategic direction — having one unquestioned decision-maker is faster and clearer.
    • Charles believes people overestimate the value of deliberation in some contexts; sometimes a strong point of view and the empowerment to act on it matters more.
  • Equity as a superpower
    • A solo founder who owns 90% of the company can make dramatically more compelling equity offers to early hires.
    • The first hire at a solo-founded company has outsized impact on culture and outcomes, and the founder can compensate them accordingly.
  • Culture reflects one person’s values
    • Without another co-founder shaping the cultural ethos, the company’s values and beliefs are a pure embodiment of the founder’s vision.
    • This can produce companies with unusually strong, coherent cultures.
  • Trying all jobs
    • Because there’s no division of labor, solo founders get to try every role — recruiting, sales, operations — and often discover hidden talents.
    • Sales is a common one: founders realize they have a natural aptitude they never would have discovered if a co-founder handled it.
  • Speed
    • Solo founders aren’t encumbered by needing to find a co-founder before starting. They can move immediately.
    • Decision-making is faster without consultation or negotiation with a partner.
  • Full empowerment to fix problems
    • If something about the company isn’t working, the solo founder is fully empowered to fix it — they either created it or allowed it to happen, and no one else is responsible for changing it.

Who tends to be a solo founder

  • Non-tech founders
    • Founders from outside tech — digital health, CPG, education — often don’t have the “co-founder” mental model at all. A former high school principal pointed out there are no co-principals.
    • These founders think bottoms-up and make unconventional decisions not out of contrarianism but because they haven’t been exposed to Silicon Valley conventional wisdom.
  • Tech founders who go against the grain
    • Tech founders who choose solo founding despite knowing the consensus tend to question convention in other areas of how they build their company as well.

Fundraising advice for solo founders

  • Don’t apologize for being solo
    • Charles used to meet solo founders who were defensive before anyone raised the issue. If it was an intentional decision, don’t qualify or explain it until asked.
    • When asked, frame it as a superpower: explain how you’ll use the extra equity to build a world-class team.
  • Don’t give wishy-washy answers about adding a co-founder later
    • If you’re never going to add a co-founder, say so clearly. Don’t say “maybe someday.”
  • Screen your investors
    • Before pitching, check whether the investor has ever backed a solo founder. Some have a hard block on it — don’t take it personally.
  • Understand that “no co-founder” is often a polite rejection
    • When investors pass, they sometimes give the least offensive reason. “No co-founder” is a convenient, inoffensive excuse when the real reason is they don’t believe in the company.
    • Most investors will pass on most companies regardless — don’t internalize it.

The emotional reality of solo founding

  • The bear case: isolation and overwhelm
    • The amplitude of emotional ups and downs is greater without a co-founder to balance you. Good co-founders ensure you never both have your worst day on the same day.
    • Many solo founders underestimate the loneliness by a factor of 10. Some come to Charles saying they weren’t prepared for the emotional roller coaster.
    • Solo founders are doubly isolated: no co-founder to partner with, and CEO burdens you can’t share with your team.
    • The company can become single-threaded through one person. If the founder is fundraising, the company isn’t talking to customers. Misallocating time has no corrective feedback mechanism.
  • The bull case: pride, energy, and deep investor relationships
    • Charles finds that many of his closest, deepest founder relationships are with solo founders — they lean on him not as a co-founder but as a trusted partner, creating a natural bond.
    • Solo founders in his portfolio use group chats as journals, venting with “no response needed” — a practice that reflects the unique need for connection.
    • There’s a special pride and energy in authorship: the ability to fix anything about the company you don’t like, because it’s entirely yours.
    • Charles sees a kinship between solo GPs and solo founders — both are atomic units making decisions independently, which creates a natural foundation for honest conversations about leadership challenges.

Practical advice for co-founder situations

  • If you’re a few weeks in and it’s not working: end it early
    • Charles is far more comfortable with early breakups than late ones. The cost of parting ways at 3 months is far less than at 3 years.
    • Common legitimate reasons: directional disagreement, someone wants stability for family, someone’s heart isn’t in startups anymore.
  • If a co-founder is checked out: have the real talk
    • Don’t threaten or remind them of consequences. Explore why they’re disengaged. If they’re meant to build something else, release them to do it — and be happy about it.
    • The hardest part is having the courage to start a conversation when you know the answer might not be what you want to hear.
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