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Explaining carried interest

The Equity Kicker

Carried interest’ is the name given to the profit share schemes that investors in venture capital funds, typically called ‘LPs’, use to incentivise the partners at at the funds in which they invest. Much like options in a startup carried interest schemes vest over time, typically five or seven years.

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Top 29 Startup Posts May 2010

SoCal CTO

When I do a quick mental query of headcount across our entire portfolio of ~30 companies, I think at least 50% and maybe as much as 60% of the entire headcount of our portfolio is in either product or engineering. We'll be your hosts for a three-part series about the use of MongoDB here at Etsy. The Curation Team. Well, half of it.

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What’s the Difference? Venture Capitalist vs. Angel Investor

The Startup Magazine

An article in Forbes explains that a venture capital firm makes its money through management fees (a percentage of the amount of capital that they have under management) and carried interest (a percentage of the profits of the business). Investor Involvement. Investor Involvement.

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Group Finance Director

Transformify

You must have unfailing integrity and a willingness to adopt a hands-on approach whilst operating at a high level. The ability to build relationships with other members of the executive team is also key. Seniority Level Director Industry Accounting Employment Type Full-time Job Functions

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How VCs Make Money….Hopefully

ithacaVC

Fourth, GP1 is entitled to a carried interest in fund profits. Therefore, the returns from the sale/IPO of the fund’s portfolio companies must clear capital commitments before GP1 gets any carried interest. Just like paying the portfolio company management team for doing its job.

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How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm

David Teten

Compensation : base salary, share of profits of management company, carry. Contact : to existing portfolio, to internal team resources, to LPs. Bloomberg Beta open-sources their entire operating manual on Github, where their website lives. Senior partners take home a lower 15 percent of the carried interest….Summarizing

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Where Does VC Money Actually Come From? [Flowchart]

View from Seed

Some VC firms have eschewed taking direct investments from public pension funds, as state laws now sometimes require these pension funds to publicly disclose information about their investments that VCs consider sensitive, confidential info, like fund-level returns or individual companies in the portfolio. Endowments. new buildings, etc).

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