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Why Internal Ventures are Different from External Startups

Steve Blank

In this post, I want to share some new thoughts that build on Steve’s post, and connect them to Lean Startup methods. Worse, Robert Adams and his two partners got 20% of the carried interest in the fund, resulting in payouts of $30 million to the partnership. First, let me recap a key insight for me from Steve’s post.

Startup 330
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The Secret History of Silicon Valley 12: The Rise of “Risk Capital.

Steve Blank

But the biggest innovation was the “carried interest” (called the “carry”.) Aligning their interests with their limited investors and the entrepreneurs they were investing in. It would charge its investors annual “management fees” to pay for the firm’s salaries, building, etc. More on this in the next post.