article thumbnail

The Economics of VCs Recycling Management Fees

Feld Thoughts

The post specifically discussed three items: Management Fees, Recycling, and Carried Interest. The section from their post follows: In addition to management fees, the process of reinvesting realized proceeds into new investments, or recycling, can also meaningfully impact net returns and alignment. That’s worth remembering.

LP 117
article thumbnail

What’s the Difference? Venture Capitalist vs. Angel Investor

The Startup Magazine

The question of venture capitalist versus angel investor often arises. Venture capital and angel investments offer excellent options to startup businesses. Most venture capital firms focus on targeted sectors of the business world, such as software, or on a specific geographical area when entertaining possible investments.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Where Do Venture Capital Dollars Actually Come From? This Visual Explains

Agile VC

Most folks reading this will know that many startups were built in part with the help of venture capital. A smaller portion of the total capital in the VC ecosystem comes from high net worth individuals. What Are These Intermediaries? The main ones include: Fund of Funds (FoFs).

article thumbnail

The VC Shakeout: Are We There Yet?

Agile VC

There are some obvious structural reasons why a shakeout in the venture capital industry takes a long time. The reality is that it wasn’t until the GEC (Global Economic Crisis, Great Recession, Credit Crunch, call it what you will) of late 2008 and early 2009 that the shakeout really began for venture capital.

LP 154
article thumbnail

Where Does VC Money Actually Come From? [Flowchart]

View from Seed

Most folks reading this will know that many startups were built in part with the help of venture capital. A smaller portion of the total capital in the VC ecosystem comes from high net worth individuals. Lee’s posts also appear regularly on View From Seed. Subscribe here for more. What Are These Intermediaries?

LP 335
article thumbnail

5 Signs You Need to Create Your Startup Sponsorship Program

Women Entrepreneurs Can

This is the point where a lot of startups are ready for an angel investor- individuals who have earned income that is exceeding $200,000 or have a net worth of more than $1 million. VCs tend to gain most of their returns through carried interest- a percentage received as compensation from the profits of a hedge fund or private equity.

article thumbnail

The Venture Spiral

K9 Ventures

The business of venture capital is relatively young. The birth of modern-day venture capital (not considering the European monarchs financing explorations and projects as venture capital) can be traced back to American Research and Development, which was started by Georges Doriot. of the size of the fund.

IRR 48