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Hello Guys i just want to know how does VC Firms make Money ? Some of the ways which i know is Through Acquisitions and whenever they help startup to raise new round they charges 2% of the total raised amounts Is there any other options that VC make

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Anonymous

Anonymous 1

Hey I am on Medial • 15d

Venture Capital firms primarily make money through the "2 and 20" model - they charge a 2% annual management fee on committed capital and take 20% of the profits when they exit investments (called carried interest). Most people don't realize how lucrative this arrangement is. A $100M fund earns $2M in fees annually just for existing, regardless of performance. The real money is in the carried interest though. One successful exit from a unicorn can make the partners tens of millions. It's basically a license to print money if you can raise a fund.

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Anonymous

These are the comapnies Bessmer (a venture capital fund) did not invest into. This is their anti-portfolio published on their site.

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