How VCs make money
n
Amount raised
$100m
n
Less management fees (2% p.a.)
$ 20m
n
Capital available for investment
$ 80m
n
Profit (20% p.a for 5 years)
$199m
n
Net profit
$ 99m
n
20% for GPs
$ 20m
n
$ Billions
Deals
1995
7868
1771
1996
11020
2474
1997
14600
3083
1998
20860
3556
1999
53480
5391
2000
105000
7814
2001
40700
4455
2002
21720
3057
2003
19510
2852
2004
21450
2925