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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

There are different flavors of family investment offices today, some are “single family” offices which invest on behalf of one uber wealthy family and their descendants whereas others are “multi-family” that might aggregate the wealth of a number of rather wealthy but not uber wealthy families. Insurance Companies.

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

Agile VC

There are different flavors of family investment offices today, some are “single family” offices which invest on behalf of one uber wealthy family and their descendants whereas others are “multi-family” that might aggregate the wealth of a number of rather wealthy but not uber wealthy families. Insurance Companies.

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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. A cynical observer might argue this is why some firms raise many concurrent small funds… then they have both large management fee streams and high volatility on each given carried interest pool.

LP 114
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The VC Shakeout: Are We There Yet?

Agile VC

a VC fund’s entire portfolio in aggregate, net of management fees and carried interest) a good return from an LP’s perspective would be 2.5-3.0x So at a fund level (e.g. typically, which in most cases would to >20% IRR.

LP 154