You are signed in. Close

You are signed out. Close

Thank you. Your subscription has started. Close

Thank you. You will get an email when a new comic comes out. Close

We could not confirm your payment. If you paid, use the link "Sign in" at the bottom of the page. Close

Something went wrong on our side. Please try again in a moment. Close

Project Visually
Random Sign in Subscribe

How venture capital funds make money: why one big win pays for all the startups that fail

Peter Thiel is a famous startup investor. He says the biggest secret of venture capital is this: in a fund that does well, the best startup brings back at least as much money as all the other startups together. Watch a fund of $100 million, built partly from the pension savings of bus drivers, live its ten years. You learn about limited partners and the general partner, fees and carried interest, the power law, follow-on money, the liquidation preference and the life of a fund.