The Capital Provider

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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