How does carry work?

Leads choose the amount of carry they take on a per deal basis. Carry represents the percentage of profits that will go to the lead.

Let's look at an example:

  • Lead is charging 20% carry
  • You invest $5000
  • The company has a successful exit, and your distribution is worth $100,000

The lead will receive 20% of the amount you earned ($100,000-$5000), which is 20% of $95,000 or $19,000. You will receive your initial investment ($5000) plus the remainder of the earnings ($76,000), which nets out to $91,000.

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