The Hidden Fees Eating VC Returns

Episode notes

Episode 20 of The Venture Capital Podcast. Lucas and Luna break down how management fees and carried interest structures quietly erode LP returns — and why some top firms are starting to change their terms. Using Sequoia's 2025 fee restructuring as a case study, they walk through the math: a 2% management fee on a $1 billion fund adds up to $200 million over a decade, and that's before carry. They discuss how venture capital's '2 and 20' standard became the norm, why it's rarely questioned, and what Andreessen Horowitz's shift to longer lockups with lower fees signals for the industry. Plus: how the rise of rolling funds and permanent capital vehicles is giving LPs more leverage. Recorded May 30, 2026. #VentureCapital #ManagementFees #CarriedInterest #LPs #SequoiaCapital #AndreessenHorowitz #RollingFunds #PermanentCapital #VCReturns #FeeStructure #2and20 #Business #Technology #FexingoBusiness #BusinessPodcast #VentureCapitalPodcast #StartupInvesting #TermSheets Keep every episode free: buymeacoffee.com/fexingo