Venture capital business models explained

To the uninitiated, the world of venture capital is a mysterious one, with many assuming VC fund managers are just rich men and women looking to get even richer. “A traditional venture capital model is usually based on an income and diety partnership structure. Those people we call the limited partners.”What is the key difference between a general partner and a limited partner, then? “The venture capital business generally operates on a management fee and profit-sharing business model. On the profit-sharing aspect, they then split the upside with the venture capital company.