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The new math: why seed investors are selling their winners earlier | TechCrunch

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Charles 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.

Venture funds are “starting to get savvier about what they need to do to generate liquidity”.

As funds grow larger and deploy more capital, they’re becoming necessarily more algorithmic, Hudson 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.