The Twenty Minute VC (20VC)20VC: 50% of Funds Will Go Out of Business | Why Growth Expectations Today are BS and Will Not Last | Why Oren Zeev Takes $0 Management Fees But 30% Carry | Why GPs Should Not Tell LPs Their Strategy
Oren Zeev delivers a masterclass in contrarian fund management, arguing that traditional VC economics are fundamentally broken and that most funds prioritize appearance over substance. His radical approach—taking zero management fees while claiming 30% carry and being the largest LP in his own funds—challenges core assumptions about how venture capital should operate in an AI-transformed landscape.
Key takeaways
- •Management fees often exceed carry upside when accounting for time value, creating misaligned incentives that prioritize fund raising over returns.
- •Every investment decision must now filter through an AI lens—companies that aren't clear beneficiaries of AI face existential risk.
- •Radical GP-LP alignment means forgoing all compensation until LPs achieve 100% return of capital, eliminating the safety net of management fees.
- •Operationally complex businesses create natural moats against AI disruption compared to simple software solutions.
- •Being the largest investor in your own fund with significant carry percentage creates true skin-in-the-game economics that traditional VC structures lack.
Listen to full episode
Best moment
I'm the biggest LP in every one of my funds. About 13, 14%. And I don't have any LP who's more than 10%. And on top of it, I have 30% carry. So really, I'm 40 something percent of the economics.
“You know, I never felt that I needed to do it.”
why a manager would be willing to give up upside in order to show DPI today and help them raise the money. You know, I never felt that I needed to do it. And I first of all, I'm the biggest LP in every, in every one of my funds. I'm the biggest LP. Every single one. Can I be blunt? How much of a fund generally are you? Like, 10%? About 13. About thirteen, thirteen, 14%. And I don't have any LP who's more than 10% in the in any given fund. So I'm always every single fund, I'm the biggest, LP. And on top of it, I have 30% carry. So so, really, I'm 40 something percent of the economics. So, of course, I think it's LP, and and I'm trying to maximize the the the long term value, and I don't want to shortchange myself as an LP. So I I believe, by the way, in radical alignment with LPs, And this is why I set up by the way, I pay myself zero. I don't see anything, which is very unusual. I don't know any VC in the world, as far as I know, that has,
5 clips
Ordered by timestamp. Jump to the moment you care about.
From the blog
Want clips like this for your podcast?
We find your top 5-8 clips, write the hooks, and deliver ready-to-post content. First 2 episodes are free.
Get 2 Episodes Clipped Free