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

David Teten

Firstly, “fund size” can be misleading as some firms prefer to raise a large aggregate amount split between several concurrent funds. Now, it is true, if you search you’ll find another Kaplan study that shows increasing fund size among sequential funds by the same manager has a negative correlation with return.”.

LP 114