Gust

MAY 7, 2014

The venture capital fund itself makes money… …by investing early in a startup company’s life, when success is not at all assured. In exchange for investing capital to help the company grow, the fund receives an ownership interest in the company. This is the money that is invested into the startups.

Venture Capital 154

Venture Capital IPO Limited Partner Carried Interest 154

The Startup Magazine

MARCH 22, 2019

The question of venture capitalist versus angel investor often arises. Venture capital and angel investments offer excellent options to startup businesses. Investment firms are staffed with analysts, partners, and others to ensure deals are soundly vetted. Securing funding from them can be a long process. What’s at stake?

Angel Investor 123

Angel Investor Venture Capital Accredited Investor Equity 123

David Teten

MARCH 2, 2013

I recently had an extensive debate with Tom about why and whether small funds (like mine, ff Venture Capital ) tend to outperform large funds (like his). We thought that you’d be interested in our conversation. While I don’t ultimately agree with the article’s conclusions, I think it warrants consideration.

LP 114

LP Securities and Exchange Commission Silicon Valley Venture Capital 114

ithacaVC

MAY 10, 2011

First, VCs get capital commitments from limited partners (i.e., That means that it has capital commitments from investors of $100mm. Capital is called when needed for investment, fund expenses or management fee. Second, the General Partner of VC1 is the entity that runs the fund (let’s call it GP1).

Carried Interest 51

Carried Interest Ratchet Limited Partner Due Diligence 51

ithacaVC

JANUARY 10, 2012

One of my students just asked me what a “Venture Partner” is in the context of a venture capital firm. I quickly typed in “venture partner” into the Wikipedia query box. So, then I typed “venture partner definition” into the Google search box. No results.

Partner 49

Partner Carried Interest Caching Harvest 49

Agile VC

OCTOBER 29, 2014

Most folks reading this will know that many startups were built in part with the help of venture capital. Most of the dollars a VC firm invests come from outside limited partner investors (LPs). FoFs take capital from institutions, wealthy families, and others, and then invest it in a basket of underlying VC funds.

Venture Capital 279

Venture Capital LP Private Equity Institutional Investors 279

BeyondVC

JUNE 29, 2005

I am not sure how many entrepreneurs understand the structure of venture capital funds but the bottom line is that while VCs manage funds, we ultimately report to our investors or Limited Partners (LPs). Clearly when VCs and their LPs negotiate their agreement, economics are the most important topic at stake.

LP 60

LP Private Equity Due Diligence Venture Capital 60