Carried Interest: How VC Fund Economics Actually Work Carried interest is the VC's share of fund profits. Understanding 2-and-20, the waterfall, and hurdle rates changes how you read investor behavior. Carried interest is why your investor cares about markups, follow-ons, and exits the way they do. Understanding the mechanics is not accounting trivia — it's how you predict what they'll push for at each stage. Read the full guide on Startup Fundraising · Find investors · Browse the Library Related guides 409A Valuations: What They Actually Do, and Why You Should Care About the Number 409A Valuation Explained for Founders 83(b) Election Guide for Founders Startup Accelerators: When They're Worth It and When They Aren't Accelerator vs Angel: Which Comes First (2026) Accelerator vs Incubator: What's the Real Difference (2026) Accelerators vs Venture Capital Accessibility Audit: The Review That's Cheaper Than the Lawsuit
