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High Returns On A Small Fund Challenge Low Returns On A Big Fund

David Teten

The Economics of Private Equity Funds demonstrates that the VC industry survives mostly on fee-based income (of which larger funds have a proportionally larger amount). Tom draws on two metrics to demonstrate that larger funds are, in fact, more likely to be top performers. But the paper I linked to by Steve Kaplan et al.

LP 114
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5 Signs You Need to Create Your Startup Sponsorship Program

Women Entrepreneurs Can

During the early days, these are your key contributors and they must be willing to put as much sweat equity into the organization as you are. 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.