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Fund Economics

How many people can a $5M fund support?

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Community Member
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Dec 22, 2023
1 answer
Accepted Answer
Dec 25, 2023
Please review this article that specifies the Venture Capital management fee model. During the investment period, a $5m fund on a sliding scale management fee schedule generates ~$150,000 in yearly revenue from fees. This can typically support 1 full time Managing Partner and one part time partner until they raise Fund 2.

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