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Where Does VC Money Actually Come From? [Flowchart]

View from Seed

This post was originally published on the personal blog of NextView founding partner Lee Hower. FoFs are typically structured as limited partnerships similar to a VC fund itself, and they typically charge an annual management fee and carried interest on profits – again just like the underlying VC funds in which they invest.

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High Returns On A Small Fund Challenge Low Returns On A Big Fund

David Teten

An article on the New Enterprise Associates blog by Partner Tom Grossi , however, makes an interesting point: most of the megafunds were raised since 1999, a period in which the entire industry did poorly. Though the megafunds did underperform in absolute terms, they may have outperformed in relative terms.

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