Is "2 and 20" Still the Standard? | Hamza Shad, Carta Insights Team

In this special deep dive episode, Peter is joined by his Carta Insights colleague Hamza Shad to unpack the operational reality of running a venture fund. They leave behind portfolio performance metrics to focus entirely on the business of the fund itself.

Peter and Hamza break down the data from Carta’s inaugural Fund Economics report. They analyze how much capital GPs are actually committing to their own funds, why anchor LPs are taking larger stakes, and whether the industry standard "2 and 20" fee structure is actually holding up.

They also discuss the hidden costs of fund operations, from legal fees to audits, and why the 2022 vintage is deploying capital slower than its predecessors. Plus, they answer audience questions on recycling capital, managing lines of credit, and why marking up SAFEs on SAFEs is a red flag for LPs.

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Chapters:
00:00 – Intro: The business of the fund
02:30 – GP Commit: How much skin in the game?
04:40 – Why PE managers commit more than VCs
05:58 – The rise of the Anchor LP
10:38 – Capital Calls: Timelines and delays
15:30 – Why the 2022 vintage is deploying slowly
19:53 – Is "2 and 20" still the standard for fees?
23:00 – Carry benchmarks across fund sizes
25:40 – The rarity of preferred returns in VC
27:00 – Operating Expenses: Legal vs. Tax costs
28:58 – Why audits are becoming mandatory
31:33 – The danger of marking up SAFEs
33:22 – Managing Manco expenses
35:24 – Q&A: When to call capital
41:35 – Q&A: Valuation methodology and stale marks
44:18 – Q&A: Secondaries and recycling capital
47:58 – Q&A: Thesis drift
49:28 – Outro

This presentation contains general information only and eShares, Inc. dba Carta, Inc. (“Carta”) is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services, and is for informational purposes only.  This presentation is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. © 2026 eShares, Inc., dba Carta, Inc. All rights reserved.