Ecosystem Ventures has a fairly unique success-only model for Investors. Unlike typical VCs, we have waived off all management fees in our current setup. We don’t charge the investors anything at the time of investment, or during the next 3-5 years of managing the investment. All our payout is backended after the exit. At that point, we charge a 20% share in returns generated, only if the IRR is greater than 12%.
Key commercial points:
- Annual management fee : 0%
- Hurdle Rate : 12% per annum
- Carried Interest : 20% on total returns
Our fee model ensures that our monetization is completely dependent on our ability to successfully source, invest, manage, exit and generate healthy returns for our investors.
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