Sexual Assault Awareness Month: ‘Online Rape Academy’ Exposes Men Seeking To Learn Abuse Tactics
As a part of CNN's “As Equals series” on gender inequality, reporters went undercover on websites and chatrooms like Motherless and Telegram where men seek advice on best practices to sexually manipulate their partners.
During Sexual Assault Awareness month, a new and troubling expose from CNNputs the spotlight on the hidden, online world of men secretly wanting to learn the best ways to sexually abuse the women that love and trust them — their own partners.
As a part of the “As Equals Series” on gender inequality, reporters went undercover on websites and chatrooms like Motherless and Telegram, where men seek advice on best practices to sexually abuse and manipulate their partners. Some porn websites highlight so-called “sleep” content, with more than 20,000 videos of men filming themselves lifting the closed eyelids of women to show a state of sleeping or being sedated, with some “eyecheck” videos gaining 50,000 views.
The “sleep” content is often categorized with descriptive tags like #passedout and #eyecheck. In one “Zzz” chat group, a user admitted to wanting to do this to his “mrs,” but was fearful of an overdose. But another user jumped at the opportunity to show the “proper” way. “Always start low. You’re thinking of a long game so if its first time isn’t enough, up the dose,” the user responded.
Another Motherless user, said to be located on the North African coast, claims to have a business selling “sleeping liquids”—a bottle of the liquid, described as “tasteless and odorless,” for roughly $175 each, to any address in the world. “Your wife won’t feel anything and won’t remember anything,” he said.
To showcase its worth, users sometimes livestream the abuse in real time for $20; however, cryptocurrency is the preferred method of payment. Like a user in West Africa who claimed his wife was sleeping, he heard snoring. He then climbed on top of her before the video ended.
While some men push being careful to avoid getting caught, that’s not always the case—some just outright confess. “We worry about who’s coming behind us, walking down the street, or who’s even friending us on Facebook. You know, we worry about going to our car late at night in a car park, but we don’t worry about who you lie next to. I didn’t realize I had to,” Zoe Watts said.
She was a victim of her husband of 16 years and mother to their four children, who confessed to his disturbing ways on a random Sunday in 2018.
He admitted that the sexual abuse had been going on for years. “He just sort of said… ‘I’ve been using our son’s sleeping medication to put in your last cup of tea at night, to tie you down, take photographs and rape you,’” she remembered. “At the end of a very busy day… I was just grateful I had a cup of tea before I went to bed, because I was so tired and didn’t have to make it,” she said.
“You don’t expect anything other than innocence to come from your partner. I’ve had people say: ‘Yeah, but he’s your husband,’ or ‘but you weren’t awake.’ ‘So… it’s not the same as being taken down an alleyway, is it?”
While Watts’ abuser is serving an 11-year sentence for rape, sexual assault by penetration, and drugging, his victim continues to struggle with using the word rape to describe what happened to her, labeling it as too painful.
She’s not alone, as troubling data from the World Health Organization shows close to one in three women around the world are subjected to sexual violence by their partner during their lifetime, a figure that has barely changed since 2000. In 2025, 316 million women, with 11% being age 15 or older, experienced physical or sexual abuse by an intimate partner.
The progress on limiting the amount of violence within intimate partner violence has been incredibly slow, with the decline only reaching 0.2% annually in the last 20 years.
Christopher John Rogers Taps Kimora Lee And Daughters For New Old Navy Collection
Christopher John Rogers infuses Old Navy’s latest designer collection with bold color, playful patterns, and vibrant energy—arriving just in time for spring style.
The Old Navy x Christopher John Rogers collection, priced from $24.99 to $84.99, launched online and in select stores nationwide on April 15. It follows the brand’s first designer collaboration with Anna Sui in October 2025, led by Zac Posen, Gap Inc.’s executive vice president and creative director, and Old Navy’s chief creative officer.
“For our second collaboration after Anna Sui, I knew that the person I wanted to work with was Christopher,” Posen told WWD of the new collection. “First and foremost, because of his work and how he interprets American codes of style and the classics, as well as the synergy of the celebration of joy, and of color and pattern.”
The 46-piece collection features a vibrant mix of clothing and accessories in bold, optimistic hues—a reflection of John Rogers’ signature use of color. Designed with Posen, the lineup encourages shoppers to mix and match styles with ease. Following past collaborations with J.Crew and Target, the Baton Rouge native was drawn to Old Navy and the opportunity to create a versatile, playful collection.
“What I’ve always really been interested in is this idea of self-authorship and self-articulation and giving the customer lots of different options, whether it be an amazing jersey top, a button-down blouse, a dress, a skirt, a pair of utilitarian cargos, and a coordinating jacket — all things that we’re known for being able to offer. I’m echoing Zac with amazing value and quality without losing any declarativeness with the product, which is really exciting to me,” John Rogers said.
The collection’s rich hues—like golden olive and burnt orange—are designed to feel both wearable and special, giving customers everyday pieces with standout appeal, John Rogers said. The silhouettes blend his signature sculptural style with Old Navy staples, from high-waisted barrel jeans and oversized denim shirts to printed midi skirts, matching sets, and halter tops. Utility-inspired pieces balance more feminine looks, while highlights include bold prints, colorful dresses, swimsuits, and a summer-ready canvas tote.
To bring the Old Navy x Christopher John Rogers collaboration to life, the brand tapped Kimora Lee Simmons and her daughters Ming Lee Simmons and Aoki Lee Simmons to star in the campaign—marking their first joint fashion moment since the iconic Baby Phat campaigns of the early 2000s.
“This campaign was such a delight to shoot 🥰 with my family. Thank youuu @oldnavy,” Aoki wrote on Instagram.
John Rogers intentionally chose the mother-daughter trio to front the campaign, highlighting the “dynamism” of who can participate in and express themselves through fashion.
“So, regardless of age, regardless of identity or body type, really sort of providing people, again, with the tools to self-express is really important,” John Rogers said. “These three ladies were a really fun expression of that and obviously, great personalities as well.”
Just hours after launch, the Drop-Waist Midi Skirt from the Old Navy x Christopher John Rogers collection was already sold out online. With standout pieces perfect for spring, shoppers are encouraged to browse the collection while supplies last.
Mark Pitts Exits RCA Records To Launch New Venture ‘Cofvnders’ Producing Usher And Chris Brown’s Tour
Mark Pitts is stepping down as President of RCA Records to launch his new multimedia management company, Cofvnders.
Mark Pitts is stepping down as president of RCA Records to launch his new venture, Cofvnders, a multimedia management company already gaining traction with the announcement of Usher and Chris Brown’s “The R&B Tour.”
The longtime music executive announced on April 14 that he will step into a consulting role with RCA Records and Sony Music, continuing to support artists he helped develop, Variety reports. Through his new company Cofvnders, based in New York and Los Angeles, Pitts will also play a key role in producing “The R&B Tour” alongside Live Nation.
“I’m proud of everything we built at RCA. I feel blessed to have played a part in shaping some of the most important careers in music, but even more importantly, in leading and helping guide the lives of young women and men. That’s legacy,” Pitts said in a statement. “I’m looking forward to continuing to work with RCA and Sony Music in a new capacity, while also feeling more energized than ever about what I’m building with Cofvnders. After more than 25 years in this business, to still feel this level of excitement is a blessing in itself.”
With more than 30 years in the industry, having got his start under Sean “Diddy” Combs at Bad Boy Records, co-managing acts like The Notorious B.I.G. and Faith Evans before co-founding ByStorm Entertainment with Wayne Barrow in 1998 and going on to sign artists including J. Cole, Miguel, and Ro James, Pitts is now utilizing his connections and expertise with global reach in mind.
Now, through Cofvnders, Pitts has partnered with attorney and entrepreneur Tamayu Takayama to launch the Tokyo Sound Continuum, a songwriting initiative connecting U.S. producers with Japanese creatives, backed by Japan’s Agency for Cultural Affairs. The effort marks the start of a broader plan to elevate Japanese talent on the global stage.
The Brooklyn native has continued shaping the culture behind the scenes. Pitts held roles at Arista Records, contributing to Usher’s diamond-certified album “Confessions,” before becoming President of Urban Music at Jive Records, where he signed a young Chris Brown and managed J. Cole.
Following the Jive-RCA merger, he was named President of Urban Music at RCA Records and, in 2021, was promoted to president under CEO Peter Edge. During his tenure, he also helped develop artists like Latto. Now, Pitts is focused on building global connections as music consumption continues to evolve and tapping into his decades-long relationships with Usher and Chris Brown to produce what’s expected to be the R&B tour of the year.
'Next year, we expect that we'll do something outside of North America as a true global game,' said WNBA commissioner, Cathy Engelbert.
The WNBA is looking into playing some games overseas starting in 2027.
According to ESPN, after negotiating a new collective bargaining agreement (CBA) with the league’s players and free agency leading to record contracts, the commissioner, Cathy Engelbert, is turning her sights to the international space. Engelbert said that the WNBA will be expanding league play, via exhibition and regular season, outside of North America for the first time next year.
The league is preparing to host games in Canada with its first expansion team outside the United States, the Toronto Tempo, prompting discussion of the league also playing in other countries.
“We’re heavily looking at that,” Engelbert said. “Obviously, this year we have the FIBA World Cup. Next year, we expect that we’ll do something outside of North America as a true global game.”
With the Tempo starting play this year and another expansion team, the Portland Fire, joining the league this season, the WNBA recently announced that three additional expansion teams will join the WNBA over the next three years. Cleveland will begin playing in 2028, then Detroit in 2029, with Philadelphia starting in 2030.
Engelbert also discussed the recent free agency period, which saw several players inking million-dollar deals for the first time in league history.
“I’m pretty emotional seeing 23 million-dollar contracts signed only two days into free agency,” Engelbert said. “Now these players can build real generational wealth.”
Those contracts were made possible after the league and its players signed a new CBA, guaranteeing that the players make more money and receive more benefits. That includes housing adjustments for players, 401(k) contributions, and money given to former players.
The commissioner also commented on the league’s growth, saying she was “thrilled with the trajectory and growth, and was really looking forward to the next few years.
Training camps will be open Sunday, April 19, with the regular season scheduled to start May 8. This will be the 30th anniversary of WNBA play.
Yeah, Right! White House Pushes Report Claiming DEI Hinders Productivity
Authors of the report, released by the Council of Economic Advisers as part of the annual Economic Report of the President, pushed that civil rights-based legislation led to “reductions in discrimination [that] served as a boon to the U.S. economy.”
Another day, another attack on diversity, equity, and inclusion (DEI) as the White House released a report claiming the practice of encouraging hiring managers on the basis of race hurts productivity by leading to inefficient management and undercuts economic growth, the Wall Street Journal reports.
“There is nothing inherently less productive about minority workers or minority managers,” the report reads. “The issue is rapidly promoting unqualified workers in order to meet racial quotas set forth by DEI.”
Authors of the report, released by the Council of Economic Advisers as part of the annual Economic Report of the President, pushed that civil rights-based legislation led to “reductions in discrimination [that] served as a boon to the U.S. economy” and based their claims on federal data broken down by industry, state and year in an effort to track Black, Hispanic and indigenous people representation within management roles – without covering gender, sexual orientation or Asian representation.
The study found the demographics rose by less than one percent between 2005 and 2015, then by four times that amount between 2015 and 2023. DEI opponents argue that such policies both unfairly and illegally discriminate based on race in addition to stigmatizing people from targeted groups who get jobs on merit. Senior White House leaders like Vice President JD Vance seemingly agree, claiming “DEI is evil” in a 2025 X post.
A lot of people think "DEI" is lame diversity seminars or racial slogans at NFL games. In reality, it was a deliberate program of discrimination primarily against white men. This is an incredible piece that describes the evil of DEI and its consequences:https://t.co/fMiIfvz0qz
Since taking office last year, President Donald Trump has ramped up efforts to eradicate DEI in federal and private hiring and college admissions, and the report is likely to add additional context to the ongoing debate of its benefits. For years, DEI advocates have argued that such practices counter implicit bias that systemically holds back disadvantaged groups and helps companies relate better to their customer base in addition to unlocking hidden talent — especially in specific spaces like academia.
A study led byColorado State University doctoral student Hanna McCaslin and members of Associate Professor Sara Bombaci’s lab found that a number of DEI initiatives in higher education are seen as widely effective by faculty and students. After surveying 611 respondents, including 328 faculty members and 269 undergraduate and graduate students, data revealed that DEI opportunities for educators only strengthen communities through individual practices that face minimal political scrutiny.
Opinions of effectiveness were consistent throughout identity groups. Some initiatives were valued a little higher by specific populations such as women and participants from historically underrepresented racial and ethnic groups who emphasized family care support and anonymous feedback systems, while women also highlighted the importance of equity in advancement and childcare.
Following a landmark collective bargaining agreement signed in March that grants players revenue sharing and higher salaries, No. 1 pick Azzi Fudd of the Dallas Wings is projected to earn $500,000, nearly six times more than last year’s top pick, NBC News reports.
“It’s an incredible time to be coming in the league, to be playing women’s basketball, to be playing women’s sports in general,” said UCLA guard Kiki Rice, drafted by the Toronto Tempo with the 6th overall pick. “I’m just so grateful.”
Azzi Fudd is heading to Dallas as the #1 pick in the 2026 WNBA Draft presented by State Street Investment Management SPY! pic.twitter.com/Q6wDl0xvcD
Fudd’s base salary is projected to rise to $572,000 in year three of her rookie deal, with a fourth-year option reaching $646,360 under the new CBA’s rookie scale. Unlike the previous CBA, which grouped rookies into broad pay tiers, the new deal sets specific salaries for each of the top eight picks.
No. 2 selection Olivia Miles, drafted by the Minnesota Lynx, will earn $466,913 in her first year, rising to $534,149 by year three.
Under the new structure, all first-round picks will make at least $289,133, while second- and third-round selections will earn the league minimum of $270,000.
“I’ve gotten to watch the last four years my teammates go through this process, and so now to be the one going through this…” Fudd said. “Excited is the word that just keeps coming (up).”
The 2026 rookie class will also see bigger bonuses under the new CBA, including $5,000 for All-Rookie team selections (up from $1,500) and $15,000 for Rookie of the Year—nearly triple last year’s payout.
“All these new perks, these benefits, (are) changes that are going to help change our lives as professional athletes,” Fudd said. “I can’t believe I just said ‘our’ as a professional athlete. I think it’s going to be incredible.”
And rookies aren’t the only ones set to benefit. The WNBA’s average salary is set to jump from $120,000 to $583,000, with a new minimum of $270,000, and top players now landing multimillion-dollar deals.
Stars like Brittney Griner have already secured seven-figure contracts, marking a shift from the past when many players, like herself, relied on higher-paying overseas leagues during the offseason. In 2022, Griner was detained in Russia for 294 days after being accused of bringing hashish oil into the country while traveling to play basketball.
“This is a deal that finally positions WNBA players, professional women basketball players, positions them for success, values them in the business appropriately,” said Terri Carmichael Jackson, WMBPA executive director, who helped negotiate the deal on behalf of the players. “This is a big deal.”
Surging ratings, ticket sales, and fan interest are driving up WNBA team valuations. Expansion franchises in Cleveland and Detroit have already secured investments above their $250 million fees, alongside a third team in Philadelphia. The three new teams are set to debut in 2028, 2029, and 2030.
“I think it’s extremely empowering, inspiring,” Fudd said. “And I think there’s still more growth to go.”
Former Michigan Football Coach Sherrone Moore Receives Probation In Staffer Case
Moore received the sentence after accepting a plea deal for lesser charges.
Sherrone Moore, the former head football coach at the University of Michigan, has been sentenced to 18 months of probation over an incident with a female staffer.
Moore will also have to pay a $1,000 fine.
Moore allegedly went to confront the staffer, Paige Shiver, at her apartment in December, inciting the incident. He did so shortly after Michigan fired him over his exposed relationship with Shiver.
According to Pro Football Talk, the 40-year-old coach allegedly blamed Shiver for his firing and threatened to kill himself with butter knives. Moore originally faced felony charges for home invasion, stalking, and other charges.
He accepted a plea deal in March, resulting in lesser misdemeanor charges. These included trespassing and malicious use of a telecommunications device, for which he received a probation sentence. He appeared at the April 14 sentencing with his wife, Kelli, by his side.
“I don’t believe, when I look at the entirety of this situation, that incarceration should be appropriate,” stated District Court Judge Cedric Simpson during the hearing in Washtenaw County Court. “I warn you, Mr. Moore, should there be a violation, all bets are off…I don’t like sending people to jail, but I don’t have a problem doing it.”
Simpson acknowledged the situation as intense for both parties, prompting him to show mercy toward Moore by imposing a lighter sentence.
“Frankly, Mr. Moore, you had no right to do what you did,” Simpson added. “I know she was placed in fear. It was a traumatic experience for you. It was certainly a traumatic experience for her, but you had no right to spread your pain to her.”
Per the stipulations of his probation, Moore must abstain from drugs and alcohol and have no weapons under his possession. He cannot contact Shiver under any circumstances and must begin counseling.
Shiver expressed her disappointment with the sentence, as detailed by ESPN.
In her own statement via lawyers, she claimed that Moore’s sentence “does not reflect the harm done to me.”
The judge noted how Moore’s wife played a crucial role in sparing her husband from a stint in jail by supporting her husband throughout.
In his own response before the Judge’s decision, Moore also thanked his wife for “her support and strength to stand by me,” before telling Simpson that he took the matter “very seriously.” His attorney, Ellen Michaels, also shared that he has begun therapy while recommitting his life to his family.
Here’s What The Average Refund Looks Like For 2026 Tax Day
In 2025, 104 million taxpayers received refunds in comparison to roughly 70 million filers that have already received tax returns ahead of the April 15 deadline.
Data from the Internal Revenue Service (IRS) show an increase in the average tax refund, up 11% to $3,462 in 2025, CBS News reports.
Andrew Lautz, director of tax policy for the Bipartisan Policy Center, a nonpartisan think tank, says taxpayers can thank provisions in the “One Big Beautiful Bill Act” for the increase in refunds.
“Aggregate refunds are up, average refunds are up, and clearly millions, if not tens of millions, of taxpayers are claiming one of the new deductions,” Lautz said.
In 2025, 104 million taxpayers received refunds, compared with roughly 70 million filers who had already received tax returns ahead of the April 15 deadline. The IRS will continue to distribute refunds after Tax Day, but Lautz claims the expectation is for the average refund size to remain steady.
The increase shouldn’t come as much of a shock to tax experts, as investment bank Piper Sandler made projections in early 2026 that tax refunds would increase by as much as $1,000. Piper Sandler’s deputy head of U.S. policy, Don Schneider, referred to the larger amount as a “hypothetical maximum,” all contingent on all filers getting a refund.
With the $106 billion in tax relief from the controversial legislation, Schneider thinks the benefits won’t just be in the form of tax refunds but also in lower amounts people owe to the IRS.
“If we’re just going to fixate on the refunds themselves or the average size, we’re going to miss half of the story,” he said. “So we need to look at the reduction in taxes that people otherwise owe. And all of this is suggestive of tax relief probably being stronger than expected when we consider more overtime, more tips, etc.”
With higher refunds on average, Republicans pinpoint some of President Donald Trump’s signature policies as the reason why, including new deductions for tip income, overtime earnings, seniors and auto loan interest, according to CNBC.
There has been an increase in people taking advantage of the elimination of federal income taxes on tips and overtime, with a third of 1,200 Bipartisan Policy Center survey respondents saying they received tipped income, overtime pay, or both.
But the rising cost of gas at the pumps has threatened the cause for celebration, as the refunds are being spent on necessities. Economists at the Stanford Institute for Economic Policy Research project that the average U.S. household will spend an additional $740 on gas this year, due to a global increase in oil prices, which is double the average increase in refund sizes so far this year.
Last-minute filers can still benefit from hefty refunds. Those who claim the federal deduction limit for state and local taxes, known as SALT, could lift average payments. Trump’s legislation raised the SALT limit to $40,000 from $10,000, allowing larger payments for eligible filers who itemize deductions.
After leaving his own sketch comedy show, Chappelle’s Show, over 20 years ago, comedian Dave Chappelle recently revealed to the Associated Press that he’d consider bringing it back.
“If you’d asked me that question a year ago, I’d have told you absolutely not,” Chappelle said. “But in the last few weeks, it’s come up a lot, and I’m considering it.”
Chappelle was in Yellow Springs, Ohio, joining residents at a ribbon-cutting ceremony for a restoration of the Union Schoolhouse. The comedian financed the redevelopment of the building, which also houses the small-town radio station WYSO, which includes a new broadcast facility.
The Union Schoolhouse was built in 1872, but was vacant for years until Chappelle’s real estate company, Iron Table Holdings, purchased the building in 2020.
WYSO will occupy the building’s lower floors, while Chappelle’s offices will be on the top floor.
“If you have the opportunity, like I did, to invest in your community, then it’s one of the greatest investments I’ve ever made,” he told the Associated Press. “In some ways, it feels dutiful. Other times I feel proud. … but ultimately, I’m doing it because I want to, not because I have to.”
Although the comedian grew up in Maryland, he spent summers in the town, where his late father, William David Chappelle III, was the dean of students at Antioch College.
Chappelle lives with his wife and three children on a 39-acre farm in Yellow Springs. He has invested in local properties and has opened a comedy club downtown.
“One of the best sovereignties that a person can enjoy is the sovereignty of their mind,” he said, according to the Associated Press. “Just the idea of knowing where you land and the rest of the world begins.”
How VC Math Works: A Founder’s Guide To The Power Law And Outsized Returns
Success in venture capital isn’t just about access. It’s about understanding the system well enough to work within it.
Written By Antonia Dean
A question I’m often asked is: “How do you actually get VCs to invest in your company?” As a Partner at an early-stage venture capital fund, most people expect my answer to be about access, networking, or finding the right firm. It’s not. The real edge is far more fundamental and has everything to do with understanding the math involved.
Venture capital isn’t just about spotting great ideas or charismatic founders; it’s a tightly structured financial model with clear incentives and defined outcomes. Once you understand how the money flows, you understand how decisions get made, what gets funded, what gets passed over, and what it actually takes to win. If you’re a tech founder, having that clarity is the difference between guessing and playing the game with intention.
Few people are ever taught to dig into the nitty-gritty of the math involved in venture capital. And that knowledge gap in understanding is a major disadvantage. Below are five core tenets to familiarize yourself with so you can break into and navigate VC with clarity instead.
What is Venture Capital? Understanding the LP and GP Relationship
Photo by Peter Dazeley/Getty Images
At its core, venture capital is a subset of private equity. VC firms raise money from large institutions and wealthy individuals. Think pension funds, university endowments, and family offices. These investors are called Limited Partners, or LPs, and they are the financial backbone of the entire ecosystem.
LPs don’t just hand over money for the sake of innovation; they’re looking for outsized returns. Their portfolios are typically diversified across safer, more predictable assets like public equities and bonds. Venture capital sits on the opposite end of that spectrum: high risk, high reward. It’s where LPs take calculated risks in pursuit of outsized returns that can meaningfully boost overall portfolio performance.
The goal is simple in theory: outperform the market. In industry terms, that’s called generating “alpha” returns that exceed standard benchmarks. The path to that alpha is anything but straightforward.
Why Most VC Bets Fail
If you’re new to raising venture capital, here’s the first uncomfortable truth: most VC-backed companies fail. Founders need to understand that this isn’t a reflection of talent or effort; it’s the model. Venture capital is built on the expectation that many companies will fail, a few will return modest outcomes, and only one or two will drive the majority of returns. That reality shapes how investors behave: why they push for aggressive growth, why they prioritize massive market opportunities, and why they make decisions that can feel misaligned with the goal of building a steady, sustainable business. Understanding this dynamic helps founders see the game they’re stepping into and decide how to play it on their own terms.
That requires a different kind of mindset. Great investors aren’t trying to be right every time. They’re trying to be right in a way that matters. They understand that failure isn’t just inevitable, it’s necessary to the model.
A typical VC portfolio might include 10 companies. Of those, it’s expected that six will fail completely. Another two or three might return the original investment, but not much more. The entire fund’s success often hinges on one or, at best, two companies delivering extraordinary returns. This is known as the Power Law. In venture capital, outcomes aren’t evenly distributed. One breakout company can generate more value than the rest of the portfolio combined.
It’s All About Outsized Returns
In popular culture, venture capital is often associated with “unicorns,” startups valued at $1 billion or more, or even “decacorns” at $10 billion+. But internally, success is defined more precisely. VCs are judged by their ability to return capital to their LPs, typically at a multiple of the original investment. Today, that benchmark is often 3–5x.
That requirement fundamentally changes how investors think. It’s not just “Is this a good business?” It’s “If this works, can it return the entire fund?” For example, if a VC firm manages a $25 million fund, it may need to generate $75 million to $125 million in returns to meet expectations. That means each investment must have the potential, at least on paper, to contribute meaningfully toward that goal.
This is why venture capital tends to favor businesses with massive market opportunities and the ability to scale quickly. Smaller, profitable companies may be great businesses, but they’re often not “venture-backable” because they can’t deliver Power Law outcomes.
How VCs Actually Make Money
The venture capital model is built around what’s commonly known as “2 and 20.” First, the “2” references the management fee, which is typically 2% of the fund’s assets under management annually. This fee covers the cost of running the firm: salaries, legal expenses, due diligence, travel, and operations. For a $25 million fund, that’s about $500,000 per year.
While that may sound substantial, it doesn’t go as far when you consider the costs of sourcing and closing deals. Legal fees alone for a single investment can exceed six figures. This is why many VC firms operate with lean teams.
The “20” is where the real upside is, in the form of “carry,” or carried interest. This is the share of profits that the VC firm keeps after returning the original capital to LPs. Here’s how it works: let’s say that a $25 million fund ultimately returns $100 million. The first $25 million goes back to LPs to repay their initial investment. The remaining $75 million is profit.
That profit is typically split 80/20, with 80% to LPs and 20% to the VC firm. In this case, the firm earns $15 million in carry, in addition to the management fees collected over the life of the fund.
That’s the economic engine of venture capital. But it comes with a catch: those profits can take a long time to materialize.
Remember, VC Is A Long Game
Unlike public markets, where investments can be bought and sold quickly, venture capital is illiquid. Returns are realized only when a company exits, either through an acquisition or an initial public offering (IPO). Both outcomes can be lucrative, but they’re far from immediate. Even a “fast” exit typically takes five to seven years. More commonly, venture investments play out over a 10 to 12-year horizon.
This long timeline is another reason why understanding VC math matters. Investors aren’t just betting on what a company can do today; they’re projecting what it could become a decade from now.Whether you’re an aspiring investor, a founder raising capital, or simply someone trying to understand how innovation gets funded, venture capital can feel opaque. But it’s not magic, it’s math.
Once you see these mechanics clearly, the industry becomes more predictable. You start to understand why VCs push for rapid scale over slow and steady growth, why they pass on good businesses that aren’t big enough, and why timing matters as much as execution.
And perhaps most importantly, you see that success in venture capital isn’t just about access. It’s about understanding the system well enough to work within it, or to challenge it.
Frequently Asked Questions about VC Math
What is the Power Law in venture capital? The Power Law is a financial principle where a small number of investments (1 or 2 out of 10) generate the vast majority of a fund’s total returns, often outperforming the rest of the portfolio combined.
What does “2 and 20” mean? “2 and 20” refers to the standard fee structure for VC funds: a 2% annual management fee to cover operating expenses and a 20% carried interest (profit-sharing) earned after the original capital is returned to investors.
Antonia Dean is a partner at Black Operator Ventures (Black Ops VC), an early-stage VC firm.
