Meta Pixel

News and Announcements

The Inner Workings of a VC Fund

  • Published December 14, 2022 8:11AM UTC
  • Publisher Osama Hassan
  • Categories Capital Raising Tips

Let’s go over the inner workings of a VC fund:

A venture fund is a fixed-pool of capital raised for investing per an agreed-upon investment strategy.

A venture firm manages this fund, and over time, can manage multiple funds.

General Partners (GPs) are the primary investment decision makers and are generally supported by a team of admin and investment professionals.

Limited Partners (LPs) provide the capital and agree to pay the GP a management fee each year and a share in a percentage of the profits.

The goal for the LP is to make a superior risk-adjusted financial return and the primary measures of their success is: Internal Rate of Return (IRR) and cash-on-cash return (C-on-C), and the multiple of invested capital (MOIC).

Click here to view the original Linkedin post.

Looking for a platform to raise capital? Click here to discover how Wholesale Investor can help you.

Your capital engagement platform

With a 14-year track record, a network of 32,000+ investors, and a capital raising platform, Wholesale investor is a leading investment platform for start-ups, scale-ups, emerging growth companies, and small caps.

Capital Insights
Capital Flight or Policy Oversight? The $180M Seismic Shift Threatening Australian Innovation

A formal Senate submission by Wholesale Investor / CapitalHQ details the alarming real-world reactions of 260 founders and investors to proposed federal tax changes. With 91% of sophisticated investors scaling back local allocations and over $180M already paused or redirected offshore, the report warns of a structural funding crisis threatening the future of Australian deep tech, private equity, and startup innovation.

Join over 45,000+ sophisticated investors

Join Now