← Glossary
VC & Fund Mechanics
Management fee
The annual fee (often ~2%) LPs pay GPs to operate the fund and pay salaries.
Why it matters
The classic structure is '2 and 20' — 2% fee, 20% carry; on small funds, fees barely cover the lights.
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Episodes on Venture Capital
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Taryn Pieterse of Rampersand — How a VC backs early-stage founders
Investment Thesis with Kali Norman · 29 May 2026
Episode Five: Dan Coughlan's Investment Thesis
Related terms
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