Never settle • 2m
Venture capitalists (VCs) typically get their funds from a group of investors known as Limited Partners (LPs). Here's a breakdown of the structure: 1. Limited Partners (LPs) These are the people or institutions who invest money into a VC fund. They include: Pension funds Endowments and foundations Family offices High-net-worth individuals Insurance companies Corporations Sovereign wealth funds 2. General Partners (GPs) These are the people who manage the VC fund. They decide: Which startups to invest in How much to invest When to exit an investment 3. VC Fund Structure LPs give money to the VC fund (typically locked in for 7–10 years). GPs manage and invest that money into startups. Profits from successful exits are shared: usually 80% to LPs and 20% to GPs (called "carried interest"). ----------------------------------------------- +-----------------------+ | Limited Partners | |-----------------------| | - Pension Funds | | - Endowments | | - Family Offices | | - HNW Individuals | | - Corporations | +----------+------------+ | | Capital (e.g., $100M) v +-----------------------+ | VC Fund (Managed by | | General Partners) | |-----------------------| | - Finds Startups | | - Invests Capital | | - Manages Portfolio | +----------+------------+ | | Investment (e.g., $1M-$10M) v +-----------------------+ | Startups | |-----------------------| | - Build Products | | - Scale Companies | | - Aim for Exit | +----------+------------+ | | Exit (e.g., IPO/Acquisition) v +-----------------------+ | Profits Returned | |-----------------------| | 80% to LPs | | 20% Carried Interest | | to GPs | +-----------------------+
Zero Fund-VC|Investi... • 7m
#9TDAYVC-DAY-2 😳Only 21 Indian VC Firms are there in 2013 So, Today’s VC topics are: 🎯Who Invests in Venture Capital? 🎯Definition & Difference between Private Equity & Venture Capital? 🎯Investors-VC also raises, We also raise but the di
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SucSEED Ventures • 2m
VCs are exiting their funds at an increasing pace. The "Great GP Exit" is in full swing. More & more GPs are leaving big-name firms to build their ventures. And honestly? It’s not hard to see why. Here’s what’s driving the shift: 1. LPs Want Focus
See MoreDirector & CEO @ Exc... • 23d
Venture Capital (VC) is a vital funding source for high-growth startups, typically those too risky for traditional bank loans. VCs pool capital from Limited Partners (LPs) to invest in promising early-stage companies with significant scaling potentia
See MoreHey I am on Medial • 9m
Mutual Fund Maestro Slogan: "Your guide to navigating the world of mutual funds." Description: Mutual Fund Maestro is a comprehensive platform dedicated to helping investors understand, research, and invest in mutual funds. It provides a one-stop-sho
See MoreZero Fund-VC|Investi... • 5m
Only 1 Secret that you must know to raise funds from VC'S but sadly no-one is talking about.. It's very often that we show these 👇 to the Investors when raising funds: Problem Solution Product Market Gap Team Customers Revenue Achievements Et
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