Chapter
Fee Structure of Venture Capital Firms
45:28 - 53:47 (08:18)
Venture capital firms typically charge a management fee based on the fund size, and also receive carry, which is a percentage of the profits earned. This system has come into question recently, as some have found that investing in private companies can yield greater returns than investing in public markets.
Clips
Early tech investors like Kevin Systrom, co-founder of Instagram, still see a bright future for Silicon Valley, and believe there is much more to be done in the tech world.
45:28 - 47:39 (02:10)
Summary
Early tech investors like Kevin Systrom, co-founder of Instagram, still see a bright future for Silicon Valley, and believe there is much more to be done in the tech world.
ChapterFee Structure of Venture Capital Firms
Episode#618: Roelof Botha — Investing with the Best, Ulysses Pacts, The Magic of Founder-Problem Fit, How to Use Pre-Mortems and Pre-Parades, Learning from Crucible Moments, and Daring to Dream
PodcastThe Tim Ferriss Show
Venture capital firms typically charge a management fee based on the fund size and get a percentage share of the profits as a carry.
47:39 - 53:47 (06:08)
Summary
Venture capital firms typically charge a management fee based on the fund size and get a percentage share of the profits as a carry. Some firms have re-evaluated their fee structure due to excess demand, while others may have historical ties with foundations like the Ford Foundation.