Preview Mode Links will not work in preview mode

Investor Connect Podcast

Investor Connect is for investors interested in learning more about investing in startup and growth stage companies. Experienced investors share their experiences and advice with those who are considering an investment into startups and growth companies. It includes a podcast series of interviews with investors to inform others about the process of funding startups as well as a resource list and a discussion board.  

Topics include sourcing, analyzing, and researching companies. Other topics include valuations, terms Sheets, board of directors, board of advisors, due diligence, syndicates, venture capital, angels, angel networks, family offices, crowdfunding, exits, and more.

Investor Connect is a community program. We welcome your suggestions for speakers and topics which you can send to us through the Contact page. No registration is required to use the resources.  Discussion boards are available to post and answer questions about startups and growth company investing through which registration is required.

Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding.

Disclaimer: Hall T. Martin is the Director of Investor Connect which is dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Aug 30, 2022


Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In setting up a VC fund, you’ll need to determine compensation for the partners and team members.

Most funds use the 2% management fee with a 20% carry model.

This means 2% of the funds raised will be used for salaries, along with 20% of any of the profits.

In a $100M fund, $20M would be available to pay salaries each year over the ten-year life of the fund or $2M.

Some funds pay the management fee more heavily in the first five years and less in the later years of the fund.

For funds under $25M, a 2.5% fee is more common.

The carry is the profit from the investments.  

In most funds, the limited partners must receive their committed capital back before carry is paid out to the general partners.

New funds sometimes offer a lower management fee to those limited partners who help raise additional funds.

Some funds forego the management fee and take their total compensation in carry.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.


For more episodes from Investor Connect, please visit the site at: 

Check out our other podcasts here: 
For Investors check out: 
For Startups check out: 
For eGuides check out: 
For upcoming Events, check out  

For Feedback please contact   

Please follow, share, and leave a review.

Music courtesy of Bensound.