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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

These folks are accessible across any industry and are particularly useful for entrepreneurs who have moved beyond the seed stage of financing, but don’t yet have the significant revenue needed to court venture capital funding. Venture capitalists are used only after a startup has begun to show a significant amount of revenue.