Carried Interest

This article defines the venture capital management fee, explains the standard 2% structure, and highlights how it reduces the actual capital available for startup investments.

An overview of investment syndicates, detailing how investors pool capital to back startups and the strategic advantages for founders managing their cap tables.

Carried interest is the profit share VCs earn after returning capital to investors. Understanding it helps founders realize why investors aggressively push for high-growth outcomes.

A General Partner manages a venture fund, makes investment decisions, and actively sits on boards. They are distinct from Limited Partners who provide the capital.