The investor side: standard VC economics, radical deal flow

Standard VC economics are built on a 2-and-20 model: 2% annual management fee on committed capital, and 20% carry (performance fee). WorkHouse Fund I operates on this exact same standardized structure. There is no complicated subscription logic or new accounting to learn.

But while the fee structure is standard, the deal flow is radical. Most funds deploy capital based on 10-minute pitches and secondary background checks. WorkHouse deploys capital only after living and building alongside founders for 90 days in a physical warehouse incubator.

For investors, this means the 2% management fee isn't just paying for office space in VC row — it's paying for a physical crucible that evaluates founders under real execution pressure. It reduces due diligence risk by an estimated 70%.

And the returns are concentrated. The fund takes a massive 15% equity effectively at Day 0. If we deploy the $3.6M (₹30Cr) fund into 120 startups, and a conservative 10% exit at a $12M (₹100Cr) average, the fund's 15% stake returns $21.6M (₹180Cr) — a 6x gross return.

LPs get pro-rata fund returns, but Anchor LPs also get first-refusal on direct co-investments round-by-round. It is entirely aligned: we curate the best talent in India physically, and LPs gain structural access to that talent at the earliest stage.