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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. Venture Capital' If there is no hurdle then the maths are fairly simple.

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Top 29 Startup Posts May 2010

SoCal CTO

He’d wasted a year of his life and had a pile of stock options that weren’t very interesting. Draw Your Ideas - A VC : Venture Capital and Technology , May 16, 2010 I saw Jack Dorsey give this talk at The 99% Conference last month. Tesla is not. It's a great talk. The Curation Team. Well, half of it. The Application. Stay Tuned.

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Where Do Venture Capital Dollars Actually Come From? This Visual Explains

Agile VC

Most folks reading this will know that many startups were built in part with the help of venture capital. The income these investments generate then help fund the operations of those organizations or capital investment (e.g. new buildings, etc). What Are These Intermediaries? The main ones include: Fund of Funds (FoFs).

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

David Teten

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. These are many of the steps I went through when I joined HOF Capital. Bloomberg Beta open-sources their entire operating manual on Github, where their website lives. Use at your own risk.

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

The Startup Magazine

The question of venture capitalist versus angel investor often arises. Venture capital and angel investments offer excellent options to startup businesses. Most venture capital firms focus on targeted sectors of the business world, such as software, or on a specific geographical area when entertaining possible investments.

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Where Does VC Money Actually Come From? [Flowchart]

View from Seed

Most folks reading this will know that many startups were built in part with the help of venture capital. The income these investments generate then help fund the operations of those organizations or capital investment (e.g. Lee’s posts also appear regularly on View From Seed. Subscribe here for more.

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How VCs Make Money….Hopefully

ithacaVC

Fourth, GP1 is entitled to a carried interest in fund profits. In its simplest form, think of profits as amounts returned to the fund in excess of capital commitments. Therefore, the returns from the sale/IPO of the fund’s portfolio companies must clear capital commitments before GP1 gets any carried interest.