Already an Angel? You can become a VC, and we'll invest in your fund. Learn how September 1.
Save My Free Seat
1

Does the “Proceeds from Sales of Investments” under “Cash Flows from Operating Activities” always represent proceeds from the sale of shares of portfolio companies?

I'm looking at an example were the “Proceeds from Sales of Investments” balance equals the “Cash and Cash Equivalents” balance, but these are supposed to be funds from a recent capital call that are temporarily in the fund's bank account as they are already committed to be transferred to portfolio companies to pay for new investments. I don't how is it possible that it got registered as “Proceeds from Sales of Investments”. Can this simply be a journal entry error?
1 See in Base
1
If being considered "already committed to portfolio companies", this is probably what led to the error, so yes - this sounds like a journal entry error.
0
Awesome. Thanks for confirming Rob.

Join VC Lab

Raising your first fund? VC Lab has helped launch 950+ venture firms, with no fees and no equity taken. The average Start Fund reaches first close in 58 days.
Apply Now