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The best VC firms have a large surplus of LP demand relative to their fund size, so a good intermediary may enable an institution to invest in higher quality VC funds than they would otherwise be able to do directly. The third reason is less in the hands of these institutional investors, and that’s governance.
The best VC firms have a large surplus of LP demand relative to their fund size, so a good intermediary may enable an institution to invest in higher quality VC funds than they would otherwise be able to do directly. The third reason is less in the hands of these institutional investors, and that’s governance.
While both the average founder and the average senior partner own 21 percent of their management firm, only the former takes home an equivalent portion of the firm’s carriedinterest the capital gains investors share with management companies. Senior partners take home a lower 15 percent of the carriedinterest….Summarizing
Funders Club ( which I''ve written about previously ) recently launched a referral program where angels can receive 10% of the carriedinterest in a deal they refer that ultimately gets investment from an FC fund. In this program, an angel can ask the entrepreneur for an allocation of the round and then syndicate through AngelList.
VCs tend to gain most of their returns through carriedinterest- a percentage received as compensation from the profits of a hedge fund or private equity. You Can’t Keep Up With Demand. Regardless of your industry, steady demand is probably the best sign that your organization is in a place perfectly poised for growth.
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