Back

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

See More
Anonymous

Anonymous 3

Hey I am on Medial • 1m

Actually, there's a third major way VCs make money that nobody's mentioned: recycling management fees. Say a VC invests in your company at a $10M valuation, then helps you grow to a $100M valuation. When the next round happens, they'll often "recycle" their pro rata rights to maintain ownership percentage. This means they get to invest more capital without raising a new fund, which means more management fees! It's a win-win for everyone as long as the company keeps growing.

0 replies1 like

More like this

Recommendations from Medial

Anonymous
Image Description

Today I came through a video where I see , In a foreign country there is a factory which recycle soaps . As hotels through Million of bars of soap every week and they recycle them . Is there any company in India doing same ?

1 replies3 likes
Anonymous
Image Description
Image Description

how to calculate valuation of a company?

13 replies6 likes
Image Description

Adithya Pappala

Zero Fund-VC|Launchi... • 5m

#9TDAYVC-DAY-12 🎯Types of Expenses for VC? 🎯What is a Self-Managed Fund? 🎯Organisational Expenses: These are costs for VC Funds which includes such as Incorporation Costs, Statutory Compliance Cost of the Funds, Placement Commissions, Distri

See More
1 replies1 like
Image Description
Image Description

Adithya Pappala

Zero Fund-VC|Launchi... • 5m

#9TDAYVC-DAY-12 📌What is Management Fees? 📌What is a Expense for VC? 🎯Management Fees- Management Fees & Expenses contributed to the fund as per investment agreement between fund & Investment Manager.No SEBI Regulations in this Matter. It

See More
3 replies7 likes
Image Description
Image Description

Yash

Trying to make thing... • 11m

Is it Possible to Start a Startup from Scratch and make it in a 100M $ Company withing let's say 400 Days ?

8 replies5 likes
Image Description
Image Description

SamCtrlPlusAltMan

 • 

OpenAI • 6m

Here is a list of notable tech founders, their ownership stakes in their respective companies, and the current estimated worth of those companies: Notable Founders and Their Company Valuations Elon Musk - Ownership: 42% of SpaceX - Company Valu

See More
7 replies23 likes
8
Image Description

Chamarti Sreekar

Passionate about Pos... • 1m

Google agrees to pay $100M in cash to settle a 2011 lawsuit accusing the company of charging for clicks on ads outside targeted geographic areas. 💰

1 replies9 likes
Image Description

Aditya Anand

Hey I am on Medial • 6m

Guys I want to start a event management startup so suggestions for it please. That suggestions means a lot to me.

1 replies2 likes
Anonymous
Image Description
Image Description

✨ Entrepreneur IQ Test ✨ Which financial instrument allows a company to raise capital while delaying the determination of the valuation of the company, and is typically used when an exact valuation cannot be agreed upon during a financing round ?

4 replies7 likes
2
Image Description
Image Description

HARSH DASWANI

Hey I am on Medial • 7m

Hi I am Harsh Daswani, And I introduce you my startup idea I have plan of recycle waste business in this model our tgt customer is those they sell their home recycle waste to reddy wala or kabari wala and they have no idea what was the mkt cost right

See More
4 replies3 likes

Download the medial app to read full posts, comements and news.