Launch an institutional-grade VC fund in a day with no up front costs. 
Meet Start Fund
0

How Does a 2% Management Fee in a 10-Year $10MM Fund Result in $2MM Deduction and $8MM for Investment?

Hi everyone! Sorry in advance for the silly question but how come that 'A 2% Management Fee in a 10 year fund of $10 MM totals $2 MM so the fund only has $8 MM to invest'? I thought 2% of 10MM is 200K? This info is from question #6 of the current sprint.
1 See in Base
0
There are 10 years (usually) of annual Managment Fees, so 10 times 2% is 20%.

Join VC Lab

VC Lab, the leading venture capital accelerator, empowers new and emerging managers worldwide to close ethical, high-performing funds in under six months. The program provides cutting-edge tools, expert mentorship, and a global network to raise more money in less time. Apply if you want to build a meaningful venture capital firm.

Apply Now