Fund Structure
Capital Call Schedule
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Quick Answer
The pattern and timing of capital call notices sent to LPs requesting they fund portions of their committed capital as the GP identifies and executes investments.
What it is
A Capital Call Schedule describes the pattern and timing by which a venture fund's GP requests LPs to fund their committed capital. Unlike mutual funds where investors pay all capital upfront, venture fund LPs commit capital that is called (drawn down) over time as the GP identifies investments and needs operating expenses. Typical capital call patterns are front-loaded during the investment period, with 60-80% of committed capital called in the first 3-4 years and the remainder reserved for follow-on investments and fees. Capital calls are issued via formal notices (usually requiring 10-15 business days advance notice) specifying the amount due, the purpose (investment, fees, expenses), and the due date. LPs must manage their liquidity to meet capital calls, as failure to fund triggers default provisions. The predictability of the capital call schedule affects LP cash management and is an important consideration for institutional investors managing multiple fund commitments.
In Practice
A $100 million fund issues capital calls on the following schedule: Year 1: $25 million (first close expenses + first 3 investments), Year 2: $20 million (5 investments), Year 3: $20 million (5 investments), Year 4: $15 million (3 investments + reserves), Year 5: $10 million (follow-on reserves), Years 6-10: $10 million (remaining follow-ons and fees). Each LP receives a call notice 15 days before the due date, with their proportional amount based on their commitment percentage.
Operational context
What good looks like
The term is tied to a real workflow, not just a definition.
Ownership, timing, and evidence are clear.
The reader can tell what decision the concept supports.
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Why It Matters
Capital call timing directly affects LP liquidity management and the J-curve effect. LPs must maintain sufficient liquid assets to meet calls, and unpredictable or clustered calls can create cash management challenges. Understanding the typical call pattern helps LPs plan their cash positions across multiple fund commitments.
VC Beast Take
First-time fund managers often front-load their capital calls, burning through LP commitments in years 1-2 to show deployment momentum. Experienced GPs spread calls more strategically, keeping dry powder for follow-on rounds and opportunistic deals in years 3-4. LPs can predict fund performance by analyzing call timing — erratic or rushed schedules usually signal poor portfolio construction discipline.
Further Reading
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Frequently Asked Questions
What is Capital Call Schedule in venture capital?
A Capital Call Schedule describes the pattern and timing by which a venture fund's GP requests LPs to fund their committed capital. Unlike mutual funds where investors pay all capital upfront, venture fund LPs commit capital that is called (drawn down) over time as the GP identifies investments and...
Why is Capital Call Schedule important for startups?
Understanding Capital Call Schedule is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
What category does Capital Call Schedule fall under in VC?
Capital Call Schedule falls under the fund-structure category in venture capital. This area covers concepts related to how venture capital funds are organized, managed, and governed.
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