Post by Hustle Fund

Who makes money when you make money? 👀 Before you invest through someone else, ask one simple question: Are their incentives aligned with mine? Fund managers usually get paid in two ways: 1. Carry = they earn a cut of the upside after investors make money. Basically: they don’t eat until you do. 2. AUM fees = they get paid a percentage of the money they manage every year, whether investments go up or down. That fee helps keep the fund running, but if fees matter more than carry, the incentive can shift from “pick great companies” to “raise more money.” Most funds need both. The key is balance. A reasonable fee keeps the lights on. Meaningful carry keeps everyone pointed in the same direction. So next time an exciting investment pops up, don’t just ask: “What can I get into?” Ask: “Who’s getting paid, and for what?” Want more simple angel investing lessons? Sign up for Small Bets: https://lnkd.in/eg6KfvFZ What’s one incentive question you ask before investing?