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GP Profitability vs. LP Returns

Aligning Interests in the VC Ecosystem

Art, Tech & Capital's avatar
Art, Tech & Capital
Jul 18, 2024
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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…

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