http://www.startupbug.com/Startingup/the-other-problem-with-venture-capital-management-fees/ The fact that most VCs get rich via “management fees” just by showing up every day. For those who don’t know, most VC’s get paid by so-called 2 and 20. The 2 refers to the 2% of the fund they use to cover operating expenses and pay their salaries. The 20 refers to the (normally) 20% “carry” fee - the percent of the profits they make for their investors that they get to keep. Fri, 28 Aug 2009 05:16:57 CDT en