Venture Capital (VC) funds are one of the most significant sources of funding for early-stage companies that have the nature of a corporation by having a name 'startups' and whose growth potential is high. Therefore, it is very crucial that for entrepreneurs applying for venture capital funding, as well as for an investor who would want to buy VC as a class, there is an understanding on the structure of VC funds. The structures of a VC fund describe how funds are raised, managed, invested, and distributed: they involve returns to investors and support to portfolio companies.

Venture Capital (VC) funds are one of the most significant sources of funding for early-stage companies that have the nature of a corporation by having a name 'startups' and whose growth potential is high. Therefore, it is very crucial that for entrepreneurs applying for venture capital funding, as well as for an investor who would want to buy VC as a class, there is an understanding on the structure of VC funds. The structures of a VC fund describe how funds are raised, managed, invested, and distributed: they involve returns to investors and support to portfolio companies.