Previous Post
Next Post
1

Asked by

Community Member

on

in

Fund Economics

Carry for Principals and other firm members

If I hire someone at a Principal level at my VC firm what's the general carry I should offer? Is there a rough breakdown anywhere of what is market in terms of carry offered for various roles at a VC firm?
1 See in Base
1

Answered by

Community Member

on

We recommend that you review VC Lab's Venture Share agreement. Principal level can receive anywhere from strategic to executive level compensation based on the recommended chart.
0

Answered by

Community Member

on

Mike thank you for your answer. Is there a way to evaluate how much a percentage of carry is worth before investments are made? I am trying to understand if there is a way to estimate $ value and pay someone who prefers to take cash now instead of carry as a VP.
0

Answered by

Community Member

on

In theory, you could do the math on what the carry is worth at 3x fund and work backwards from there.

Join the Leaders of Venture 2.0

Our graduates are creating disruptive capital with exceptional expertise, ethical investing practices, and exceptional returns. Whether you're launching your first fund or scaling an established firm, VC Lab provides the tools, network, and support needed to succeed in today's venture landscape.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?