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Which level of hurdle rate is now acceptable in European VC

Asked by:
Community Member
Nov 02, 2023

We understand that Decile team encourages to skip the hurdle, but we see that generally investors in Europe do no accept it (mainly due to high inflation) 

Top answer:

It's not common to see hurdle rates for funds less then $30m, even in the EU. Small funds are optimized for the carry, not for fees. So, when you insert a hurdle, you're going to have mis-aligned incentives and expectations with your LPs...