The Capital Provider
Capital & Markets
Provides capital and profits from all other roles — strongest leverage position
The Capital Provider occupies the most leveraged position in the ecosystem: they participate in the upside of every successful role without executing any specific one. The 2-and-20 model means they earn regardless of individual outcomes. The primary skill is not technical but relational and analytical: who to back, when to enter, and how to build deal flow.
How it earns
2% management fee + 20% performance fee on gains; board seats; co-investment rights; deal flow advantages that compound.
How it fails
GP commitment funded by circular management fee arrangements. Pumping a token narrative in the portfolio, then selling to retail. The Angermayer model: listed holding company where retail investors occupy the bottom tranche.
Real examples across cycles
Linux / Open Source
- Benchmark Capital (Red Hat) and August Capital (VA Linux)
- Intel Capital (strategic stakes in Red Hat and VA Linux)
- Larry Augustin (post-VA-Linux angel and board member)
Crypto
- Pantera Capital (Dan Morehead)
- DCG (Barry Silbert)
- a16z crypto
AI
- Founders Fund (Peter Thiel)
- Sequoia AI portfolio
- Tiger Global AI bets
People who play this role
Your first step
Attend 5 pitch events and write a structured evaluation of each startup — publish the framework.
Is this your role?
The assessment scores you against all 27 roles — free, no account needed.
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