Anybody who has studied the VC industry knows that it works by “power law” returns in which a few key deals return the majority of a fund.

For early-stage investing, I believe that the small flat partnership is the best structure if the goal is to produce high return on capital funds. Here are some reasons why this model is superior for early-stage investing:- At the early stage, investors must bet on teams and ideas that have not been proven. The biggest winners almost always come fr... See more