Nicole DeTommaso: Venture capital compensation structures delay payouts for up to 10 years

Nicole DeTommaso: Venture capital compensation structures delay payouts for up to 10 years
VCs face long payout timelines

Nicole DeTommaso outlines how venture capitalists can become millionaires by investing in a successful company, but notes the typical payout is delayed by 7 to 10 years.

She explains that VCs commonly work under a 2/20 compensation structure, receiving a 2% management fee every year. Distribution of carry and ultimate earnings are dependent on longer investment time horizons.

DeTommaso has previously identified nine venture capital firms actively hiring opportunities for those seeking entry into the industry. She has also highlighted that operators may take on platform roles at VC firms, offering founder support and contributing to firm growth. These posts add practical context to her guidance on compensation and long-term payouts for venture capitalists.

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