The Equation Series
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Part V: Performance and the Investment Organization

Chapter 24

Teams, Careers, and Investment Decisions

A venture firm is two businesses under one name. The management company earns fees and pays salaries, rent, travel, data, platform staff, and the back office. The general-partner entity receives carried interest, which arrives years later and only from strong funds. In venture even more than in buyouts, the carry is the job, and the carry depends on outliers.

The preview ends here. The full chapter is in the book.

In this chapter

  1. 24.1Why venture firms stay small
  2. 24.2Firm structures
  3. 24.3Roles and the pyramid
  4. 24.4Carry as an option
  5. 24.5Decision rights
  6. 24.6Careers
  7. 24.7Developing judgment