If people tend to tip 10.3% of profits vs 20% with a traditional fund, how do you attract talent? Higher volume, some kind of efficiency gains, a generally more attractive work environment, etc
20% of the profits at a hedge fund is divided among the partnership with the owner of the hedge fund getting substantially all of the economics and the junior analyst receiving nominal basis points. On Instavest the 10.3% is for the one lead investor (with the Instavest transaction fee, of course :). Also, the lead managers on Instavest have an opportunity to build their track record and brand.
Aha, I hadn't read up on your actual product. Neat idea, I like it.