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The new math: Why seed investors are selling their winners earlier

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Summary
Nutrition label

80% Informative

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.

Hudson says investors in very young companies are being forced to think like private equity managers.

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 Precursor ’s best returns.

VR Score

82

Informative language

80

Neutral language

60

Article tone

informal

Language

English

Language complexity

54

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not offensive

Hate speech

not hateful

Attention-grabbing headline

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Known propaganda techniques

not detected

Time-value

medium-lived

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