Episode 2: How VCs Make Money

In this episode, we’ll explore how venture capitalists make money and why that influences their investment decisions. What you’ll learn in this episode of Venture Deals book summary: ​What the management fee is and how the 2% rule covers the day-to-day costs of running a VC firm, ensuring partners get paid even if investments fail.​How carried interest, or the 20% rule, gives VCs a share of profits from successful exits, and why they need big wins to make a fund worthwhile.​Why VCs focus on home runs, not singles, and how that influences which startups get funded.​How alignment between founders and VCs matters, and why your growth goals need to match theirs before taking their money.Whether you are raising your first round or just curious about venture capital, this episode breaks down the money behind the deals and helps you understand the incentives driving investor decisions.

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