Capital Call

When a fund asks its LPs to actually transfer committed money, drawn down over time as deals happen, rather than all upfront. LPs commit capital, then send it when called.

Why it matters

Capital calls are why a fund's committed size and its deployed size differ, and why a VC's promise to invest depends on LPs delivering. It rarely touches founders directly but explains fund timing.

For example

A fund that has closed on 50 crore draws down 5 crore from its LPs to fund a new investment, rather than holding all the committed money upfront.

Related terms

Limited Partner Dry Powder Fund of Funds

Go deeper

See how founders actually handle this on Raising your first round, part of the Starting Up hub.

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