About this episode
This episode explains the workings of a VC Fund of Funds, including capital raising, management fees, and risk comparison to traditional VC funds.
This video explains how a VC Fund of Funds (FoF) works. It explains how we raise LP capital from investors, how cash is paid into the fund and how cash is paid back to LPs. I explain how the management fees and carry work, how this compares to a classic VC fund that invests directly in startups, how the risk is lower, how the payments back to LPs are expected to be much steadiers, multiples, and other ways to compare an FoF to a VC fund and how they work together.
People in this episode
Host: Andrew Romans
Topics covered
- VC Fund of Funds
- LP capital
- management fees
- carry
- risk comparison
- investment strategies
Keywords
- VC Fund of Funds
- LP capital
- management fees
- carry
- investment
- risk
- returns
More episodes of Fireside with a VC
- E132 INFORMATION RIGHTS: The Clause That Saves Founders | Arthur Bavelas + Andrew Romans · May 14, 2026 · 56 min
- Building the Future of Manufacturing with AI – Insights from Tyson Tuttle (former CEO of $8B acquisition of Austin’s Silicon Labs) · April 4, 2026 · 47 min
- E130: VC Secondaries — ROFRs, SPVs, Fees, and How Not to Get Blocked · February 24, 2026 · 30 min
- E129 — Silicon Valley Real Estate – Selling Google their first building - Barry DiRaimondo, CEO, SteelWave · February 11, 2026 · 60 min
- E128 — Biju Ashokan (CEO, Radius): AI-native operating system for real estate brokers · January 22, 2026 · 43 min
- E127 AI-native all-in-one CRM | Simo Lemhandez, CEO, Folk on Fireside with a VC · January 9, 2026 · 27 min
Explore listener stats, chart rankings, contacts and more on the Fireside with a VC podcast page.