Analysis

August 11, 2023

Carried interest in VC — what it is and how it works

Carried interest provides GPs of VC funds and the wider investment team with an incentive to find the best deals and provide big returns on their investments

Carried interest — also known as carry — is a critical element of venture capital (VC) funds, incentivising general partners and the wider investment team to hunt down the best deals and drive the success of portfolio companies. But how does it work? And when can VCs expect a payout?

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A headshot of Marcin Hejka, managing partner of OTB Ventures
Marcin Hejka, OTB Ventures
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Jeannette zu Fürstenberg, the founding partner of La Famiglia.
Jeannette zu Fürstenberg, La Famiglia
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A headshot of Xavier Lazarus, the managing partner of Elaia.
Xavier Lazarus, Elaia
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