VC's "skin in the game" is interesting. EG the $21,000,000 they just "gave away" will need to be paid back to investors before Sequoia partners see any of thei

VC's "skin in the game" is interesting. EG the $21,000,000 they just "gave away" will need to be paid back to investors before Sequoia partners see any of their carry / performance fee. On a $100,000,000 fund the VCs have a performance fee of something like 20% of the profits on every $1.00 over $100,000,000 they send back to investors. Yes this is house money, but it's still real skin in the game for the partners who just evaporated at least $4 - 5m in potential fees on other investments to maintain the integrity of their brand.