How is the 20% carry of VC fund distributed between GP?

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JASON LEMKIN

The smaller and newer the fund, the more equally.

With older funds, the original GPs often keep a certain amount of carry (10%-50%) in funds they are no longer active in, at least for a fund or two.

And with bigger funds, fewer and fewer GPs have anything close to an equal stake.

In a larger + older fund, it’s entirely possible to be a “GP” and have a 3% stake, for example.

Sometimes being a GP isn’t that great of a deal.

Hence, tons of successful GPs are now raising their own funds, or leaving to join other funds with more equitable distributions.

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Published on January 14, 2018
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