Fund Structure
Evergreen Fund
A venture fund with no fixed end date that reinvests returns rather than distributing them to LPs.
Unlike traditional 10-year VC funds, evergreen (or permanent capital) funds have no termination date. Profits are recycled back into new investments rather than distributed. This eliminates the pressure to exit investments within a fund lifecycle.
In Practice
Foundry Group's venture studio operates as an evergreen vehicle — returns from successful exits are reinvested into new startups without raising a new fund every 3-4 years.
Why It Matters
Evergreen structures allow truly long-term investing without the pressure to exit within a fund's life. They align incentives with building lasting companies rather than optimizing for quick returns.
VC Beast Take
Evergreen funds solve venture's biggest structural problem: the forced timeline. But they create a new one — without fund cycles, what keeps the GP disciplined?
Related Concepts
Further Reading
Bootstrapping vs Venture Capital: Which Path Is Right for Your Startup?
A comprehensive comparison of bootstrapping and venture capital — the economics, control trade-offs, risk profiles, and decision framework to help founders choose the right funding path.
LP vs GP: How Venture Capital Fund Structure Works
A clear explanation of how venture capital funds are structured, the roles of limited partners and general partners, fee economics, and how fund structure affects startup founders.
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