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Where Does VC Money Actually Come From? [Flowchart]

View from Seed

This post was originally published on the personal blog of NextView founding partner Lee Hower. Most of the dollars a VC firm invests come from outside limited partner investors (LPs). I believe great entrepreneurs do (and should) seek capital from VCs they think will be great long-term, value added investment partners.

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

Agile VC

Most of the dollars a VC firm invests come from outside limited partner investors (LPs). The actual partners of a VC firm (GPs) will typically invest a minimum of 1% of the total size of their fund,* though frequently this percentage is substantially higher (especially in many of the best funds). Insurance Companies.

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

David Teten

See the Techcrunch posts by my Partner John Frankel and Professor Robert Wiltbank , my recent post on the quality of angel returns data , as well as reports from the Silicon Valley Bank and Kauffman Foundation. Partners at smaller funds, by contrast, have to hustle before they can cover their mortgage.

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The VC Shakeout: Are We There Yet?

Agile VC

Some of the firm’s partners may move on to new jobs during this phase but at least some are usually still around. 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.

LP 154