Question

Question 24 1.4 pts How does a venture capital fund typically make money? III. Charging a flat amount per investment made 1.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The correct answer is option D

  • Charging Management fees: Venture capital funds normally paying a yearly Mgt fee to the fund’s management firm or company on the  form of salary ,fund expenses
  • taking share of fund profit : it is usually 20 to 25 %, 20 percent will be giving to general partners and 80 % will be giving to limited partners
Add a comment
Know the answer?
Add Answer to:
Question 24 1.4 pts How does a venture capital fund typically make money? III. Charging a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Suppose that EastCapital (EC), a venture capital firm, raises $250 million of committed capital. Over the...

    Suppose that EastCapital (EC), a venture capital firm, raises $250 million of committed capital. Over the 14-year life of the fund, $50 million of this committed capital is used to pay EC's management fee. As is typical in the venture capital industry, EC only invests $200 million (committed capital less lifetime management fees). At the end of 14 years, the investments made by the fund are worth $840 million. EC also charges 20% carried interest on the profits of the...

  • Suppose that EastCapital (EC), a venture capital firm, raises $250 million of committed capital. Over the...

    Suppose that EastCapital (EC), a venture capital firm, raises $250 million of committed capital. Over the 15-year life of the fund, $50 million of this committed capital is used to pay EC's management fee. As is typical in the venture capital industry, EC only invests $200 million (committed capital less lifetime management fees). At the end of 15 years, the investments made by the fund are worth $850 million. EC also charges 20% carried interest on the profits of the...

  • Question 35 1 pts The key powers given to the Feyl to make the money supply...

    Question 35 1 pts The key powers given to the Feyl to make the money supply elastic were 1. set reserve requirements II. issue currency III. lend money to banks at the discount rae IV. buy and sell government securities OIV only I, III, and IV only II and III only I only

  • Question 5 1 pts Which statement is NOT true about money market mutual funds. A money...

    Question 5 1 pts Which statement is NOT true about money market mutual funds. A money market fund is a type of mutual fund that invests in high- quality, short-term debt instruments, cash, and cash equivalents. Money market funds should be used as a place to park money temporarily before investing elsewhere or making an anticipated cash outlay; they are not suitable as long-term investments. Though not quite as safe as cash, money market funds are considered extremely low-risk on...

  • Jennifer is interested in the mutual fund RBC U.S. Index Fund – Series A. She has...

    Jennifer is interested in the mutual fund RBC U.S. Index Fund – Series A. She has a few questions for you before she buys this investment. a) Does the reported fund’s return include the Management Expense Ratio (MER) ? Yes or No b) What type of fee is charged: No-load, Front-end load or a Back-end load? c) Is the status of this mutual fund classified as a closed-end or open-end mutual fund?   d) Based on your response in c), explain...

  • Journal entries, financial statements, and closing entries for a Capital Projects Fund The following transactions occurred...

    Journal entries, financial statements, and closing entries for a Capital Projects Fund The following transactions occurred during the fiscal year July 1, 2018 to June 30, 2019: 1. The City of Spainville approved the construction of a city hall complex for a total cost of $120,000,000. A few days later, a contract with a 5 percent retainage clause was signed with Paltrow Construction for the complex. The buildings will be financed by a federal expenditure driven grant of $25,000,000 and...

  • Summarize the article and how does it relate to time value of money The finance department...

    Summarize the article and how does it relate to time value of money The finance department and CFOs are getting closer and closer to the marketing department, and for once, it’s not because marketing is asking for more budget. Here’s why your CFO peers are shifting into digital strategy, how they’re interacting with the marketing department and what your organization can do to increase alignment. The Time Value Of Money Investing, at its very core, is about patience. You put...

  • John and Joseph are vice presidents of Copperbelt Money Management (CMM) and co-directors of the company's...

    John and Joseph are vice presidents of Copperbelt Money Management (CMM) and co-directors of the company's pension fund management division. A major new client, the Nkana League of Cities, has requested that CMM present an investment seminar to the mayors of the represented cities. John and Joseph, who will make the presentation, have asked you to help them by answering the following questions. a) What are a bond's key features? (4 Marks) b) How is the values of any asset...

  • PART III Risk A JOB AT EAST COAST YACHTS You recently graduated from college and your...

    PART III Risk A JOB AT EAST COAST YACHTS You recently graduated from college and your job search led you to East Coast Yachts. Became you felt the company's business was seaworthy, you accepted a job offer. The first day on the job, while you are finishing your employment paperwork, Dan Ervin, who works in Finance stops by to inform you about the company's 401(k) plan. A 401(k) plan is a retirement plan offered by many companies. Such plans are...

  • QUESTION 1 Does the Basel II Accord deserve its share of the blame in the run...

    QUESTION 1 Does the Basel II Accord deserve its share of the blame in the run up to the financial crisis of 2007 Those who say "no" however point to shortcomings of Basel 1 Accord as the possible reason. At a time when countries had just begun the implementation of the Basel II Accord, the remnants of the Basel I en with its lack of sensitivity and inflexibility to rapid innovations, could have created perverse regulatory incentives to simply move...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT