GP Profitability vs. LP Returns

Aligning Interests in the VC Ecosystem

The VC world thrives on a symbiotic relationship between GPs and LPs. GPs, the fund managers, source, invest in, and manage promising startups. LPs, the investors, provide the capital that fuels these endeavors. But a key question lingers: how well are GP profitability and LP returns aligned?

The GP Perspective: Incentive and Reward

GPs are compensated th…