investors
Management Fees
In traditional venture capital models, there is generally a 2% annual management fee. This is on average between 15%-20% of the value of the portfolio, without the incentive to create any real value to investors. We’ve eliminated management fees and aligned our incentives with our investors’; everyone wins when Lodestone Ventures portfolio companies succeed.
Guidance
Traditional VC models offer minimal guidance and hands-on support to portfolio companies or claw back some of the cash given to them. Investments are enrolled in LGP, an active growth and acceleration program aimed at propelling them into the next stages of maturity while mitigating unnecessary risks.
Focus
Traditional VC models focus more on investment and company selection, and less on skills and expertise needed to support growth of portfolio companies. At LGP, our team brings unique insights in supporting founders/entrepreneurs and protecting startups from making common, avoidable mistakes, while helping them grow.