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The Vc partnership structure incentivizes small teams against large AUM. If you’re a team of three, if you bring on those two associates that’ll be $100k less in your pocket every year. May not be the best structure to generate returns for LPs, however the obligatory GP commit by LPs and the financial burden this creates, pretty much guarantees that this won’t change.

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It incentivizes small teams, but in the sense that you want the smallest team possible to generate the highest returns. If that one extra associate can help you screen exponentially more deals, they'll still be more than worth it in the long run.

IF you know the associate and trust them and think they will screen the right way - the small team can often be folks who know / trust each other. It can be hard to add someone particularly outside your standard networks.

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