Management fees are a necessary component of an investment fund, unless you want to allow only independently wealthy investment advisors to launch new funds. T

Management fees are a necessary component of an investment fund, unless you want to allow only independently wealthy investment advisors to launch new funds. That's fine for Marc Andreesen and Fred Wilson, but I'd like to think we don't want to push young, hungry VCs out of the business. 2% isn't the right number after a certain size (Does it cost twice as much to run a $200m fund as a $100m fund? No!), but some level of fees makes sense. We need smarter LPs, not a whole new model. There's always going to be brain-dead money that will invest under whatever fee structure is prevalent. Until they stop plowing money into $200m+ funds without asking "Why do you need all those management fees?", VCs will keep lining up to take their money. Smart LPs can drive incremental changes like pushing management fees down on large funds. And that's all the OP is asking for, really; not scrapping the VC model.