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How Venture Capital Funds Work

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Manage episode 517770783 series 3292223
Content provided by Andrew Romans. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Andrew Romans or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

This video / episode is NOT for my usual audience, but explains how venture capital works to someone who is new to VC. We recently had new LPs invest in our VC funds, and they were not clear about how VC differs from a hedge fund. They were not clear on how they pay their cash into the fund, how the management fees and carry / performance fee work, and how we make cash distributions back to them, and how they get their money back and are paid profits. This video explains how classic VC works, how 2&20 works, and how and when distributions are made when we sell shares from IPO, M&A, or secondary transactions.

  continue reading

132 episodes

Artwork
iconShare
 
Manage episode 517770783 series 3292223
Content provided by Andrew Romans. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Andrew Romans or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

This video / episode is NOT for my usual audience, but explains how venture capital works to someone who is new to VC. We recently had new LPs invest in our VC funds, and they were not clear about how VC differs from a hedge fund. They were not clear on how they pay their cash into the fund, how the management fees and carry / performance fee work, and how we make cash distributions back to them, and how they get their money back and are paid profits. This video explains how classic VC works, how 2&20 works, and how and when distributions are made when we sell shares from IPO, M&A, or secondary transactions.

  continue reading

132 episodes

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