How do Investors in Startups (Angels, VCs) make money?

Most of our family’s income comes in the form of capital gains. And most of that comes in the form of carried interest on capital gains. Carried in... (2021)

Disclaimer: This post gets fairly detailed on venture math. I generally think it’s helpful for founders who take VC money to understand the busines... (2017)

Feld Thoughts, July 7, 2004: Venture Capital Deal Algebra: I’ve found that even sophisticated entrepreneurs didn’t necessary grasp how valuation ma... (2004)

Here's how it goes: you will (almost certainly) lose money on your early deals, and you will be shocked when this happens. You will be shocked eve... (2017)

From AVC, Fred Wilson: The venture capital math problem is pretty basic, maybe something you'd do in high school calculus or even pre-calculus. He... (2017)

Over the past few decades, a small number of startups — 6% — end up driving 60% of the returns. “Dear readers, I’m happy to announce I’ve comple... (2019)

Most of us know intuitively that venture investing is a hits driven business. A relatively small number of winners drive returns. However, you migh... (2019)

Digging into "Two and Twenty" & VC compensation Money, money, money. Always sunny. In the [fund managers's] world — ABBA If you have ever been i... (2019)

“1/ I've been having a few conversations with people in #VC about the denominator problem and I wanted to share this bit of math to put things in p... (2020)

The size of PayPal’s acquisition is unusually large for a company emerging from the growing but still nascent Los Angeles startup ecosystem. (2019)

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 ... (2020)

Immigrants Mar Hershenson and Pejman Nozad’s venture fund, Pear VC, was once doubted. Then it turned $1.9 million in DoorDash into a stake worth mo... (2020)

Q:  What are the Pros and Cons of Seed Investing? Seed investing is a bit of a sucker bet.  At least on a relative basis to other types of venture (2020)