In this video, I talk about the three ways for how a venture capitalist creates money and earns money. Number one, the management fee, which is used to pay for staff salary and expenses. Number two, Carry, which is the long term success fee that incentivizes venture capitalists to do an outstanding job and be diligent with the money. And then number three GP commitment, which is the venture capitalists' own investment into his fund, where he gets to keep all the profits.


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