Do small venture funds (~ $10M) also follow the 2-20 model - Quora discussion

Do small venture funds (~ $10M) also follow the 2-20 model, or do they follow other models to make the economics work at small-fund sizes? - Quora

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Dave McClure
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January 18, 2016
Former Founder, Partner at 500 Startups (company) (2010–2017)
Originally Answered: What is 500 startups business model?

In 2015, 500 Startups generated ~$14M in revenue from several sources including management fees, accelerator program tuition, events & conferences, partnerships & sponsorships, & education. In the future, we may also make money based on carry (aka profit) from our investments. In 2016 we estimate total budget will grow to $20-25M+ from increases in staff, funds under management, and other programs & services...

Do small venture funds (~ $10M) also follow the 2-20 model, or do they follow other models to make the economics work at small-fund sizes? - Quora

---

Dave McClure
·
January 18, 2016
Former Founder, Partner at 500 Startups (company) (2010–2017)
Originally Answered: What is 500 startups business model?

In 2015, 500 Startups generated ~$14M in revenue from several sources including management fees, accelerator program tuition, events & conferences, partnerships & sponsorships, & education. In the future, we may also make money based on carry (aka profit) from our investments. In 2016 we estimate total budget will grow to $20-25M+ from increases in staff, funds under management, and other programs & services...