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VC Insanity: How the economics of venture funds explain the crazy things VCs do

99 点作者 danshapiro将近 15 年前

5 条评论

robk将近 15 年前
Fee harvesting is one of the more annoying things about big funds.<p>Most funds take their full 2% (or whatever) a year for the entire committed fund size, hence the motivation to raise larger and larger funds. At that point, the fee is rather juicy especially when they're collecting fees from 2 or more active funds (assuming they raise a new fund every 3 years or so). Even if they don't get into carry, the partners can live pretty well, though their returns might not justify it.<p>There's a need for more lean VCs to complement the lean startups that are emerging now. Fee-driven funds that are too large to maneuver wind up making poor decisions.
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donaldc将近 15 年前
What a mess of perverse incentives. I can understand how the best VCs can get away with insisting on such terms from their LPs, but how are the rest of the VCs able to get away with it?
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necrecious将近 15 年前
Interesting analysis. Hopefully some VCs will backup the line of reasoning.<p>It would also explain why the new type of programs like YC is exploring other economic incentives that is more aligned with the entrepreneurs.
alok-g将近 15 年前
&#62;&#62; Rule number two is that there’s no recycling. Once they cash out of a deal, the money goes away -- never to be invested, for the rest of the decade.<p>What is the rationale behind this? This sounds insane, and results in some more insanity that the author is trying to explain with this one!
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apu将近 15 年前
Much more concisely explained in PG's "A Unified Theory of VC Suckage": <a href="http://www.paulgraham.com/venturecapital.html" rel="nofollow">http://www.paulgraham.com/venturecapital.html</a><p>PG's is also far more entertaining to read.
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