Venture capital fund managers demand considerable payment for their services, this fee is negotiated with investors in the contract. Venture capital fund managers are compensated similarly to hedge funds, recieving an annual fees involving a share of the invested money and the success of the fund. A common arrangement is 2 and 20: every year the manager receives 2% of the capital invested and 20% of net profits of the fund. This is not a rule and often varies with different investors and companies. In recent years venture capital funds have increased from the 20% arrangement to compensate for frequent failed ventures.
Link to This Resource: Venture Capital Fund Management Fees
http://privateequityblogger.com/2008/06/venture-capital-fund-management-fees.html






