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

David Teten

Moreover, VC funds on average earn approximately 2/3 of their revenue from fixed fees. 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). examined 4 separate sources using a variety of return metrics.

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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. Scaling will increase the cost it takes to do business and it often does it before you’re able to generate additional revenue in the traditional way your company acquires sales.