11/29/2023 0 Comments Venture capitalist salaryThese fees start to “stack” on top of each other to some extent, and thus, your salary can double (along with your gains). You can also see from this why many VC firms now are raising new funds every 2 years (vs 3–4 years before). And if you are investing well, the carry should dwarf the cash over time. Note though, that at this size, the “buy-in” also can be large. There are enough fees here that the senior partners will make $1m+. In a $760m+ fund, that’s $15m+ a year in fees. Series B+ Fund: $1m+ a year for top partners.The general partners often make $300k-$500k a year, and it can be as much as $1m year if you are ‘stacking’ multiple funds on top of each other. In a $250m fund, that’s $5m a year in fees. In say, a $150m fund, that’s $3m a year in fees. Potentially much more once you are 3 funds in. Series A Fund: $300k-$500k a year in salary.A $50m fund with 3 partners and 1 associate has $1m a year to split across salaries, expenses, partners, and associates. Smaller funds often do 2.5%, but still, there’s only so much to go around. 2% of a $20m fund is only $400k a year for all expenses. Pre-seed: $100k or less a year in salary.Those important points noted, then … on the cash / salary side, here are some rough yardsticks for a ‘full’ partner (likely 10 years in) before carry might make once 2–3 funds are under management: (I’m ignoring recycling here, it doesn’t matter for the answer). So roughly 20%-25% of the fund size is, over the life of the fund, set aside for costs and salaries. That’s what you’re dividing up among expenses (rent, travel, etc) and salaries. Third, generally, 2%-2.5% of the fund size each year for up to 10 years is set aside for costs and salaries.
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