4min chapter

This Week in Startups cover image

How VCs decide to sell a position + Future's Jean-Louis Warnholz | E1575

This Week in Startups

CHAPTER

How Private Equity Clawbacks Work

C clawbacks are for private equity. Private equity gets paid a percentage of the gain and value of the companies. If the company comes back down in value, they would have to give back some of those gains. You're not always going to be able to unload part of your position. It only happens in the best companies or what's perceived as the highest growth best companies.

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