← Glossary
VC & Fund Mechanics
Management fee
The annual fee (often ~2%) LPs pay GPs to operate the fund and pay salaries.
Why it matters
The classic structure is '2 and 20' — 2% fee, 20% carry; on small funds, fees barely cover the lights.
Hear it from people who've done it
Get the real-world version of "Management fee" drawn from hundreds of conversations with founders and investors.
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Episodes on Venture Capital
Perspective X with Pauline Fetaui · 2 July 2026
Taryn Williams: Building and Exiting 6 Companies — and the Cost No One Talks About
Investment Thesis with Kali Norman · 26 June 2026
Rohan Workman of Skalata — Backing overlooked founders as AI rewrites the thesis
First Cheque with Cheryl Mack & Maxine Minter · 17 June 2026
How to Think About M&A as a Startup with Alex Feldman
Related terms
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