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Top 29 Startup Posts May 2010

SoCal CTO

LIFT10: Workshop on Hacking Venture Capital - Fred Destin , May 7, 2010 This morning at the excellent LIFT Conference I gave a two hour workshop on " Hacking Venture Capital " designed to give entrepreneurs a hands-on experience of (a) pitching and (b) negotiating with detailed debrief and tricks of the trade.

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Why Average VC Returns Don’t Really Matter

Agile VC

LPs investing in venture hold a subset of all the funds in the VC universe by design (see #4 & 5). It’s true that FoFs provide LPs a way to purchase VC funds in a basket, but by design these are comparatively narrow actively-managed investment funds rather than broad-based passive vehicles.

LP 176
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Why Internal Ventures are Different from External Startups

Steve Blank

A corporation, by contrast, is a permanent organization designed to execute a repeatable, scalable business model. 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. First, let me recap a key insight for me from Steve’s post.

Startup 331
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The Venture Spiral

K9 Ventures

In addition, there is a performance incentive — the Carried Interest or Carry. The carry is typically around 20% of any gains on the fund. The design of K9 Ventures takes these issues into consideration. In return for the operational role the GPs play, their firm receives a Management Fee.

IRR 48
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The Secret History of Silicon Valley 12: The Rise of “Risk Capital.

Steve Blank

But the biggest innovation was the “carried interest” (called the “carry”.) Aligning their interests with their limited investors and the entrepreneurs they were investing in. Theme: Digg 3 Column by WP Designer. In a typical venture fund, the partners receive a 2% management fee. Blog at WordPress.com.

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US VCs Need to Lobby For High Skilled Immigration Reform (and Sacrifice Preferential Tax Treatment If Needed)

Hunter Walker

I can have my immigration reform and my carried interest designation? Taxes are a real issue for sure – much of their work is on the company-formation side (how stock options are treated, etc) and that matters to founders and teams. But quite simply we’ve reached the point where priorities deserve to be flipped.

America 117