article thumbnail

Where Does VC Money Actually Come From? [Flowchart]

View from Seed

The best VC firms have a large surplus of LP demand relative to their fund size, so a good intermediary may enable an institution to invest in higher quality VC funds than they would otherwise be able to do directly. The third reason is less in the hands of these institutional investors, and that’s governance.

LP 335
article thumbnail

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

Agile VC

The best VC firms have a large surplus of LP demand relative to their fund size, so a good intermediary may enable an institution to invest in higher quality VC funds than they would otherwise be able to do directly. The third reason is less in the hands of these institutional investors, and that’s governance.

Insiders

Sign Up for our Newsletter

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

article thumbnail

How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm

David Teten

While both the average founder and the average senior partner own 21 percent of their management firm, only the former takes home an equivalent portion of the firm’s carried interest the capital gains investors share with management companies. Senior partners take home a lower 15 percent of the carried interest….Summarizing

article thumbnail

5 Signs You Need to Create Your Startup Sponsorship Program

Women Entrepreneurs Can

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. You Can’t Keep Up With Demand. Regardless of your industry, steady demand is probably the best sign that your organization is in a place perfectly poised for growth.

article thumbnail

Pari Passu or F.U.little guy

Professor VC

Funders Club ( which I''ve written about previously ) recently launched a referral program where angels can receive 10% of the carried interest in a deal they refer that ultimately gets investment from an FC fund. In this program, an angel can ask the entrepreneur for an allocation of the round and then syndicate through AngelList.