The fee structure for a venture capital fund is very similar to the fee structure for a standard private equity fund. The fund manager will be compensated through a combination of a management fee and carried interest, where the carry will be paid on either a deal-by-deal basis or at the end of the Fund’s lifecycle. In terms of the structure of the carry, limited partners will generally receive all their invested capital back from the VC fund before the fund managers are entitled to receive carried interest on the excess returns. Limited partners will then be repaid the rest of the excess; distributions of 70-85% depending on the incentive fee charged by the fund manager.