Charlz Hadson spoke about the mistakes of young entrepreneurs and investment rules

Charlz Hadson, founder and managing partner of Precursor Ventures, a venture capital firm with over a decade of experience in eco-entrepreneurship, has invested in more than five hundred companies to date, according to Zamin.uz.

In an interview with Build Mode, he discussed the key mistakes young entrepreneurs are making today and how the rules for attracting investment have changed, as reported by TechCrunch.

According to Hadson, market conditions have shifted dramatically, and previous approaches no longer yield the expected results. In particular, the unprecedented growth rates in the artificial intelligence sector have finally heightened investor expectations.

Now, even companies showing two- or threefold growth in other sectors may fail to appear sufficiently attractive to investors. This demands that founders adopt more unique and innovative approaches.

Many startup founders strive to value their companies as highly as possible. While this can help attract media attention and increase influence before other investors, Hadson considers it a serious risk.

As he puts it, an excessively high valuation can turn into a burden for the company’s future. When large amounts of capital are raised, investors expect not just a return on their investment, but massive outcomes commensurate with the capital deployed.

Therefore, entrepreneurs must realistically assess their capabilities and clearly define who they are prepared to work with over the next ten years. In the fundraising process, it’s not just the investor who evaluates the founder—the founder must also scrutinize the investor.

Hadson advises checking investors’ track records in talent acquisition, go-to-market strategy, and relationships with other partners. The most effective way to do this is by speaking with other founders who have previously worked with that investor.

It’s also important to remember that venture capital based on speculative optimism is not suitable for all types of businesses. In Hadson’s view, such capital should be directed only toward large projects capable of absorbing the full expenses of an entire fund.

Often, solid business plans cannot deliver such explosive growth—and that’s perfectly normal. Today, investors compare startups not only to last year’s performance but also to the fastest-growing AI companies in history.

This highlights how intense competition has become in the startup world. Under these challenging conditions, only those ventures that truly understand market needs and choose the right strategic partner can succeed.