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Why VCs Should Recycle Their Management Fees

Feld Thoughts

The advantage, for all the investors (the VCs and their LPs), is that $100m gets put to work as invested capital, rather than just $85m. Our view as a firm is that a successful VC fund has a net return of at least 3x to the LPs. That means that if an LP invests $1 in the fund, they get back $3 over time.

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Interview with Mike Brown Jr. of AOL Ventures

The Startup Lawyer

We’re a small fund with $30M of committed capital, so we focus on Seed and Series A opportunities. Assuming a Corporate VC is operating a traditional fund vehicle and not just investing off of the balance sheet (probably the first real difference), I would say the most recognizable difference is in the single vs. multiple LP structure.