venturecapital

There are two types of VCs

Those that optimize for the 2% (mgmt fee) 

And those that optimize for the 20% (carry)

co-founder @layer3xyz, prev investor at accolade partners

Like most things it boils down to incentive structure.

Many (too many?) VCs sit on a fund for 4-5 years collecting their 2% before ever having to show tangible results. Raise a fund worth a 100M+ across a couple GPs and you’re basically set for life regardless of results. Burns reputation but few think that far.