Fund Structure
Rolling Fund
A continuously open venture fund structure where investors subscribe quarterly rather than committing the full amount upfront to a traditional 10-year closed-end fund.
Rolling funds, popularized by AngelList, allow GPs to raise capital on a rolling basis — investors (LPs) subscribe to a quarterly investment amount and can cancel after minimum commitments. Instead of one large fund close, the GP raises continuously.
This structure dramatically lowers the barriers to becoming a fund manager. A solo GP can start deploying capital immediately without raising a full fund first, and can grow their LP base organically over time.
In Practice
A well-known angel with a strong Twitter following might launch a rolling fund, allowing followers to invest $10K/quarter. As the GP's reputation grows, more LPs subscribe — the fund grows organically without a traditional fundraise.
Why It Matters
Rolling funds democratized access to venture fund management but also raised questions about LP commitment quality and fund discipline. For LPs, rolling funds offer easier entry and exit than traditional funds but less lockstep incentive alignment.