Carry (Carried Interest)
The share of a fund’s profits that GPs keep as their performance reward.
Carry (typically around 20%) is the portion of investment gains that fund managers earn after returning capital to LPs. It aligns GPs with strong returns and explains why VCs chase large outcomes — modest exits don’t move the needle for them.
Examples
A fund returns profits and GPs take 20% carry. — Carry motivates VCs to back potential big winners.
How it relates to The Startup Foundry
Understanding why investors seek outsized returns helps you frame your opportunity — something the Foundry coaches.