article thumbnail

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
article thumbnail

What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

So we as VCs search for entrepreneurs/founders who have the whole package or as much of it as possible. I didn’t negotiate hard on carried interest. Having street smarts with no inspirational ability to build teams can yield a great small business but will be difficult to scale into a large VC-backed business.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Why Internal Ventures are Different from External Startups

Steve Blank

A startup is a temporary organization in search of a repeatable, scalable business model. innovating new products and services within an already scaled business model), the processes that companies have optimized for execution inevitably interfere with the search processes needed to discover a new business model.

Startup 327
article thumbnail

The Rise & Fall of Great Venture Firms [Part 1] ? AGILEVC

Agile VC

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. Previous Entries.

article thumbnail

What is a Venture Partner?

ithacaVC

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
article thumbnail

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

David Teten

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.”. Tom also notes (and I agree), “One other point: My points are all macro-level and from an LP’s perspective.

LP 114
article thumbnail

The Venture Spiral

K9 Ventures

In addition, there is a performance incentive — the Carried Interest or Carry. The carry is typically around 20% of any gains on the fund. A couple of years into it, the friendly neighborhood search giant, Big Kahuna, shows up and decides to acquire Little Fish for $100M.

IRR 48