Got a question? We'd love to help!

Can't find what you're looking for?

Email us: support@wefunder.com

Carried Interest

Carried Interest is a share of the profits from an investment.  It's how venture capitalists make money from their own investors (called limited partners), typically when a startup is acquired or after an IPO. 

Example: A venture capitalist invests $1M at a $10M valuation. In five years, the initial $1M of equity is sold for $300M. If carried interest is 20%, the venture capitalist would earn $59.8M [($300M - $1M) * 20%]. 

Can't find what you're looking for?

Email us: support@wefunder.com