The Equity Kicker

MARCH 25, 2014

‘Carried interest’ is the name given to the profit share schemes that investors in venture capital funds, typically called ‘LPs’, use to incentivise the partners at at the funds in which they invest. Much like options in a startup carried interest schemes vest over time, typically five or seven years.

Carried Interest 109

Carried Interest Venture Capital Vesting Europe 109

Seeing Both Sides

MAY 31, 2010

I read the article in The New York Times on the carried interest debate and was shocked to see my name and a reference to me that read: " As the Senate Democrats sent signs that they were open to a tax increase, investors and their lobbyists mobilized quickly, warning that the proposal could stifle investments that create jobs.

Carried Interest 35

Carried Interest New York Massachusetts Greece 35

David Teten

MARCH 2, 2013

Assuming you have a large amount of capital to invest, the relatively easy decision is to invest in one of the brand-name, multi-billion dollar VCs. That said, how do you avoid suffering the poor median returns the industry is known for? However, the conventional wisdom is that small VC funds have better performance profiles than large ones.

LP 114

LP Securities and Exchange Commission Silicon Valley Venture Capital 114

This is going to be BIG.

FEBRUARY 25, 2019

Partners, in my mind, should have carried interest (upside) in the fund and be able to lead deals and take board seats. I believe the name creates a certain set of expectations and founders make assumptions about it enough that you should be a bit discerning about how you use it.

Syndicate 103

Syndicate Syndication Angel Investor Cap Table 103

Agile VC

JULY 11, 2012

The names of these once great, now defunct firms may not be terribly familiar today but here are just a few examples: American Research & Development [Boston] –> Founded by George Doriot and depending how you count it, either the first or second formal VC firm in the US. But it’s not quite that simple.

Silicon Valley 240

Silicon Valley Carried Interest Cofounder Boston 240

Professor VC

JULY 25, 2013

I''m all for transparency, but won''t be naming names in this post as I don''t want to put some entrepreneurs in a difficult position. It is assumed that the angel has done diligence and will be working with the company going forward to earn a carried interest from others investing in the syndicate.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

David Teten

SEPTEMBER 2, 2017

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 carried interest the capital gains investors share with management companies. Senior partners take home a lower 15 percent of the carried interest….Summarizing

Private Equity 60

Private Equity Venture Capital Equity Partner 60