AI Snips
Chapters
Transcript
Episode notes
VC Firm Structure
- VC firms are partnerships, not companies, structured as a management company (LLC) controlling a series of funds.
- Each fund is a separate legal entity with its own capital, investments, and lps.
VC Compensation
- VC compensation includes annual management fees (2% of fund size) and carried interest (20% of profits).
- Fees go to the management company, while carry is split among general partners.
Management Company Control
- The management company's partners own the firm and control all decisions.
- Non-management company partners are employees, even if titled "General Partner."