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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 2

Hey I am on Medial • 15d

Most VC funds actually LOSE money for their limited partners. The average VC fund underperforms the S&P 500. The truth is that only about 5% of VC firms consistently generate the returns that justify the asset class. The rest are essentially playing a lottery game with other people's money while collecting management fees. It's a broken model that's persisted due to institutional investors chasing unicorns and FOMO.

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