Betting on Founders Before the Product
In the earliest stages of startup funding—pre-seed and seed rounds—investors often make decisions without a product, user base, or measurable traction. This environment requires placing a high-stakes bet on the founder’s capabilities rather than the business itself.
Charles Hudson, managing partner at Precursor Ventures, has invested in over 400 companies and supported more than 450 founders. He emphasizes the importance of believing in the founder’s narrative and adaptability: “It’s not just about solving a problem — it’s about whether I believe you’re the one to do it.” His approach highlights that early-stage investment is as much about trust in people as it is about ideas.
Wesley Chan, co-founder and managing partner at FPV Ventures and a former Google innovator behind Google Analytics and Google Voice, is renowned for backing bold, category-defining companies like Canva, Robinhood, and Plaid. His investment philosophy centers on identifying mission-driven founders capable of transforming modest beginnings into lasting impact.
Traits Investors Seek in Zero-to-One Founders
- Adaptability: The ability to pivot and iterate rapidly in response to feedback and market realities.
- Compelling Narrative: Founders must articulate a clear, believable vision that inspires confidence.
- Mission-Driven Mindset: A strong sense of purpose that motivates persistence beyond initial setbacks.
- Resilience and Grit: Endurance through uncertainty and the challenges of building from scratch.
- Authenticity: Transparency about limitations and openness to learning.
Hudson and Chan caution that red flags—such as overpromising without substance or lacking clarity about the problem being solved—often derail early fundraising efforts.
Practical Advice for Raising Your First Institutional Check
The session at TechCrunch Disrupt 2025 offers actionable guidance for founders navigating their first venture round. Key takeaways include:
- Focus on building trust by telling a genuine story rather than relying solely on traction metrics.
- Prepare to address investor concerns about risks and market viability with transparency.
- Recognize common fundraising mistakes, such as underestimating the importance of founder-investor fit.
- Leverage early feedback to refine your pitch and demonstrate coachability.
- Understand that early investors are investing in your potential as a founder, not just your current product.
This conversation is part of a broader lineup of over 200 sessions at TechCrunch Disrupt 2025, taking place October 27–29 at Moscone West, San Francisco.
Register now to take advantage of Regular Bird savings of up to $668 before September 26, 11:59 p.m. PT.
FinOracleAI — Market View
The insights shared by Charles Hudson and Wesley Chan underscore a crucial dynamic in early-stage venture capital: the primacy of founder quality over product maturity. This perspective aligns with the broader trend of investing in visionary entrepreneurs who demonstrate resilience and adaptability amidst uncertainty.
- Opportunities: Early access to disruptive startups by identifying strong founder narratives and mission alignment.
- Risks: High failure rates at pre-product stages necessitate rigorous evaluation of founder traits to mitigate losses.
- Market Impact: Increased emphasis on founder-driven storytelling may reshape fundraising strategies and investor-founder relationships.
Impact: This approach reinforces a founder-centric investment model, potentially accelerating innovation by funding bold ideas early while demanding heightened founder accountability.
