The term carried interest goes back to the medieval merchants in Genoa, Pisa, Florence, and Venice. These traders carried cargo on their ships belonging to other people and earned 20 percent of the ultimate profits on the “carried” product. Today VCs compensate themselves with 20% of the profits from their funds and this is called “carry” or “carried interest”.
This is somewhat appropriate as the shippers took on on risk and were patient to see the journey through and ultimately shared in 20% of the upside much like VCs today.
If you want to come to Europe this summer there is no better place to be in June than Stockholm and London. Join us!
Stockholm – The Future of Raising Angel & Venture Capital Funding – June 3
Stockholm – The Future of Angel & Venture Capital Investing – June 4
London – The Future of Angel & Venture Capital Investing – June 9
London – The Future of Raising Angel & Venture Capital Funding – June 11