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Through comment conversations with many of you I tried to emphasize that it isn’t enough to just have one attribute. About 18 months ago in early 2008 we hired an analyst (pre-MBA), but wanted to wait until after Summer to hire a post-MBA associate. We weren’t ready to hire an associate yet so I offered him a summer internship.
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 “carriedinterest,” which is what irritates the masses.
What’s a “fair” split of fee income and carriedinterest when a partner joins several years/funds after others? For example carriedinterest 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.
Sean Seton-Rogers, Partner, Profounders Capital, breaks the conversation into three areas: Control: voting/veto for new deals, share of management company. Compensation : base salary, share of profits of management company, carry. Senior partners take home a lower 15 percent of the carriedinterest….Summarizing
They had raised nearly $2 million of venture capital money to hire an army of workers whose job it was to mindlessly stare at images all day and no one asked about working conditions or if the existence of this company and others like it had costly societal consequences. Was there ever that kind of conversation at the board level?
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