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Why Average VC Returns Don’t Really Matter

Agile VC

FoFs have a range of strategies of course, but broadly speaking LPs that invest in FoFs pay them a management fee and carried interest (on top of the fee & carry of underlying VC funds they invest in) for access, diversification, active management or a combination of all three.

LP 176
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Where Does VC Money Actually Come From? [Flowchart]

View from Seed

Very small funds may not have any large institutions as LP investors, just individuals, but even the largest and most established VC funds often have “sidecar” funds to enable a select group of individuals to invest in their funds (typically entrepreneurs the firm knows well). Insurance Companies. Should they care?

LP 335
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Where Do Venture Capital Dollars Actually Come From? This Visual Explains

Agile VC

Very small funds may not have any large institutions as LP investors, just individuals, but even the largest and most established VC funds often have “sidecar” funds to enable a select group of individuals to invest in their funds (typically entrepreneurs the firm knows well). Insurance Companies. Should they care?

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The VC Shakeout: Are We There Yet?

Agile VC

And I think it’s at best bad form (and at worst outright deception) when VCs who have little or no capital to make new investments aren’t clear with entrepreneurs about their situation. But it is also typically in the interests of those same stakeholders for the VC firm’s challenges not to be broadcast widely.

LP 154