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Explaining carried interest

The Equity Kicker

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.

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The Rise & Fall of Great Venture Firms [Part 1] ? AGILEVC

Agile VC

Some disgruntled younger partners left to go start a new firm in 1965 called Greylock. Some disgruntled younger partners left in the 90s to form what is now Redpoint Ventures (IT team) and Versant Ventures (healthcare team). Big success was Digital Equipment Corporation (DEC), in which ARD invested about $2.1M

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Why LP’s Passed on Seed Funds 10 Years Ago (And What’s Happened Since)

View from Seed

Our response was that we were motivated to focus on seed because 1) this is what we enjoy, care about, and are good at and 2) we’re going to make money on carried interest and this was the best way to get there. From an industry standpoint, I think this have turned out to be only partially true.

Dilution 399
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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

He and his partner told me about this new idea over the course of nearly a year. Partners in VC funds only wanted to fund entrepreneurs who had a certain percentage of their net worth tied up in their venture. I run the recruiting process for my VC firm, GRP Partners. I introduced him to my partners who liked him.

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How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm

David Teten

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. Sean Seton-Rogers, Partner, Profounders Capital, breaks the conversation into three areas: Control: voting/veto for new deals, share of management company. In theory, carry correlates with decision-making power.

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Top 29 Startup Posts May 2010

SoCal CTO

VCs in seed clothing: Chris Dixon, Mark Suster, and Naval Ravikant interviewed - Venture Hacks , May 5, 2010 I recently got on the phone for a cross-continent conference call with Chris Dixon from Founder Collective , Mark Suster from GRP Partners , and our own Naval Ravikant. SlideShare: VC signaling in seed rounds.

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Battery Ventures Announces New $750 Million Fund

VC Cafe

The New York Times says the new fund is a signal that Silicon Valley is being revived, but according to the Wall Street Journal , it was lower fees and carry that facilitated securing the capital: It helped that Battery proactively offered some investor-friendly terms.