81. Getting Smart on a New Market, Part 1 (Charles Hudson)

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Charles Hudson of Precursor Ventures joins Nick to cover Getting Smart on a New Market, Part 1. We will address questions including:

  • Developing a POV on a New MarketWhat Charles’ experience at SoftTech was like and how he made the transition to founding Precursor.
  • What his continuing role as a Venture Partner at SoftTech entails.
  • How Charles decides to study a new, emerging market and some of the markets that he’s analyzed over the years.
  • The three components of his approach to getting smart on a new area.
  • How important timing is and how he considers if the timing is right for a new area.
  • If he assesses markets vertically and looks for the level within the supply chain stack to see where a company is playing and which level within the chain is going to exert the most control over the market.
  • How he breaks down market structure and the critical components therein.
  • The importance of the degree of homogeneity of the customer base within a target market.
  • How he thinks about companies disrupting existing markets and those creating brand new markets.
  • We discuss how there’s always a good reason to say no to startups and, more importantly, the key, recurring reasons that come up that cause him to say yes.
    and we’ll wrap up part one by discussing:
  • How he measures TAM in an area that’s nascent where the market doesn’t yet exist.

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