Listen "How VC Fund of Funds (FoF) Work"
Episode Synopsis
This video explains how a VC Fund of Funds (FoF) works. It explains how we raise LP capital from investors, how cash is paid into the fund and how cash is paid back to LPs. I explain how the management fees and carry work, how this compares to a classic VC fund that invests directly in startups, how the risk is lower, how the payments back to LPs are expected to be much steadiers, multiples, and other ways to compare an FoF to a VC fund and how they work together.
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