Fund Structure
Fund Life
The planned duration of a VC fund, typically 10 years — with an investment period of 3-5 years and a harvest period of 5-7 years.
Fund life is the total lifespan of a venture capital fund from initial close to final wind-down. Standard VC fund life is 10 years, though most funds include extension provisions allowing 1-2 additional years if needed. The fund life divides into two phases: the investment period (typically years 1-5), during which the GP actively deploys capital into new investments; and the harvest period (years 5-10), during which the GP focuses on supporting existing portfolio companies and executing exits. At the end of the fund life, all investments must be exited or distributed in-kind (transferring shares directly to LPs). The 10-year fund life creates structural pressure on portfolio companies to achieve exit milestones within a defined timeframe.