Hey friends - Have you ever wondered what a venture capital firm actually is? What's the legal structure? How are they structured to raise money from investors and invest in startups? What does it mean when they say they're "raising a new fund?" We're going to take a look. As a startup raising money, an investor, or as a general partner, this stuff matters because structure plays a material role in how the fund manager gets paid. As Charlie Munger so eloquently stated:
Awesome writeup . Always wondered how private funds are set up. This gives a very clear picture. Thanks a lot.