5 ms·

I believe that most funds are structured in a way that the VCs have to pass the proceedings (minus their cut of course) to their LPs (investors).

• joshu 15y ago
  Correct. However many funds do not distribute returns that are less than a certain amount (1.5x is typical, I think)
  • motti_s 15y ago
    So in you opinion, assuming that Sequoia had to distribute the "overnight" 2X to their LPs, was that a good investment for them?
    • joshu 15y ago
      I think VCs are looking to provide bigger returns than this.
• dpark 15y ago
  Thanks. I wasn't aware of that.