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VC Fund Economics

Fund Economics Walkthrough

A step-by-step guided simulation that walks you through the complete lifecycle of a VC fund — from fund size to LP returns.

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Step 1 of 6

Fund Size & Duration

Every fund starts with two fundamental decisions: how much capital to raise and how long the fund will operate. These set the foundation for everything else.

$50M
$5M$500M

First-time fund managers typically raise $10-50M. Established firms raise $100M+.

10 years
5 years15 years

Standard is 10 years. Some funds extend to 12-15 years with LP approval.

1%
0%10%

GPs typically commit 1-5% of fund size. Higher commitment signals alignment.

What does this mean?

You are raising a $50.00M fund that will operate for 10 years. As the GP (General Partner), you will personally invest $500K (1%) alongside your LPs.

$49.50M
LP Capital
$500K
GP Commit

Why GP commitment matters

LP investors want to see that the GP has "skin in the game." A larger GP commitment signals confidence and aligns interests. Institutional LPs often require at least 1% from the GP.
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VC Beast. “Fund Economics Walkthrough.” VC Beast, https://vcbeast.com/tools/investors/fund-economics-walkthrough.

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