Agile VC

JULY 11, 2012

What’s a “fair” split of fee income and carried interest when a partner joins several years/funds after others? For example carried interest takes years to accrue and is based on the efforts and decisions of both the individual and the firm that happened 5-10 years ago.

Silicon Valley 240

Silicon Valley Carried Interest Cofounder Boston 240

Agile VC

OCTOBER 23, 2012

It’s true that FoFs provide LPs a way to purchase VC funds in a basket, but by design these are comparatively narrow actively-managed investment funds rather than broad-based passive vehicles. fund or marginally profitable fund doesn’t generate any carry for the GPs that are investing it.

LP 176

LP Accredited Investor Carried Interest Portfolio 176

Steve Blank

MARCH 26, 2014

However, I will then argue that while these methods are necessary to managing new ventures inside a company, they are insufficient. A startup is a temporary organization in search of a repeatable, scalable business model. First, let me recap a key insight for me from Steve’s post.

Startup 327

Startup Business Model Lean Russia 327

ithacaVC

JANUARY 10, 2012

So, then I typed “venture partner definition” into the Google search box. Managing Partner/General Partner (I have seen some with Managing Directors too like an investment bank): top dogs that run the shop and own most of the carried interest. These roles typically do not have any carried interest.

Partner 49

Partner Carried Interest Caching Harvest 49

David Teten

MARCH 2, 2013

In response, Tom writes, “The Kauffman data set is exceptionally small in comparison to the others and inherently biased (not in a nefarious way, but in the statistical sense that they had an active management policy that selected their investments and those are the funds for which they have return data).

LP 114

LP Securities and Exchange Commission Silicon Valley Venture Capital 114

K9 Ventures

NOVEMBER 30, 2008

In return for the operational role the GPs play, their firm receives a Management Fee. Industry averages for the management fee are expected to be around 2.5% In addition, there is a performance incentive — the Carried Interest or Carry. The carry is typically around 20% of any gains on the fund.

IRR 48

IRR Venture Capital LP Early Stage 48