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General Partners (GP) are the showrunners of a #VC firm. If they perform well, they can make big money. But if they lose, their career is over.
A π§΅on how do VCs make moneyβ¦
A π§΅on how do VCs make moneyβ¦
#VCs make money in 2 ways:
1οΈβ£ Management Fee - typically 2% per annum of the total corpus across the fund lifecycle (10 years)
2οΈβ£ Carry - usually 20% of the profits generated after returning the initial capital of the investors
Letβs take the recent example of #IndiaQuotientπ
1οΈβ£ Management Fee - typically 2% per annum of the total corpus across the fund lifecycle (10 years)
2οΈβ£ Carry - usually 20% of the profits generated after returning the initial capital of the investors
Letβs take the recent example of #IndiaQuotientπ
The Bangalore based VC firm returned its first fund of βΉ32 Cr with a net multiple of 5.9x to its investors. Took them 9 years.
So π³πΌπΏ π²ππ²πΏπ ππ‘π₯ π ππΏ πΆπ»ππ²πππ²π± πΆπ» ππ΅π² π³ππ»π±, ππ΅π²π πΏπ²πππΏπ»π²π± ππ‘π₯ π±.π΅ ππΏ ππΌ ππ΅π²πΆπΏ ππ£π π₯
π
So π³πΌπΏ π²ππ²πΏπ ππ‘π₯ π ππΏ πΆπ»ππ²πππ²π± πΆπ» ππ΅π² π³ππ»π±, ππ΅π²π πΏπ²πππΏπ»π²π± ππ‘π₯ π±.π΅ ππΏ ππΌ ππ΅π²πΆπΏ ππ£π π₯
π
