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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

Through comment conversations with many of you I tried to emphasize that it isn’t enough to just have one attribute. I didn’t negotiate hard on carried interest. I started the series talking about what I consider the most important attribute of an entrepreneur : Tenacity. You need the whole package.

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Why Internal Ventures are Different from External Startups

Steve Blank

Worse, Robert Adams and his two partners got 20% of the carried interest in the fund, resulting in payouts of $30 million to the partnership. The success of Documentum and Document Sciences, they felt, came largely from Xerox technology and customers, yet the startup companies XTV funded got all the credit.

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Why I Don’t Celebrate Income Inequality

Both Sides of the Table

I found the conversation a bit disconcerting. But the celebratory nature of today’s conversation felt tone deaf and seemed to ignore the rules that get bent in favor of those with resources or born into privilege. VCs also get capital gains tax rates on “carried interest,” which is what irritates the masses.

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

David Teten

We thought that you’d be interested in our conversation. Ironically, it may be true that it is better for the VCs themselves to raise smaller funds because the more volatile a fund the more valuable the carried interest (which has, after all, the exact same payout structure as a call option).

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The Industry Needs to do One Thing to Avoid Regulation: Provide Better Phone Support

Hunter Walker

While many of the engineers I’ve know are perfectly sociable, well-adjusted, highly conversant people, the ‘sullen hacker in a hoodie on the spectrum’ is anywhere from an antiquated stereotype to a true segment of our community. The extroverted engineer looks at *your* shoes when he talks.

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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. link] Dave Sandrowitz.

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A Call to Arms on the IPO Malaise and Inaction

Seeing Both Sides

But recent conversations that I have had with bankers has carried a different, even more depressing message. But then everyone got distracted with the financial crisis and (yet) more regulation related to SEC registration and battles over the tax treatment of carried interest.

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