How Does a Venture Firm Actually Work Economically?

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There are multiple parts to the economics of a venture firm. The management company is an LLC that has basically the employment relationship with all of the founders and then it is the sort of umbrella parent over each of the funds. There's also economics on a fund by fund level, which is How is the carry from this fund getting distributed in a percentage basis across everyone?

Benchmark Capital. We tell the tale of the legendary equal partnership that accomplished something no other venture firm can claim: twice it has produced the highest returning fund of its cycle, each time with a 100% different GP lineup. If ever there were a playbook for successful generational transfer of a generational-defining venture firm, this is it. We spend 3.5+ hours digging into how the dotcom “eBay eBoys” transformed into the rockstar Fab Four of the Uber, Instagram and Snap mobile gold rush (spoiler: not by a straight line!), and what the future holds for Benchmark’s next GP generation. If you’re a student of the venture game from any angle — founder, GP, LP, etc — this is a story you need to tune in for!

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