Already an Angel? You can become a VC, and we'll invest in your fund. Learn how Sept 15.
Save My Free Seat
Cohort 22 launches September 10. Bring a founder, an angel, or an LP who belongs in the room. The VIP Launch Mixer is free and online.
Reserve a Spot
1

Exit of fund before startups have liquidated

One of the LPs asked me what happens if a company has not exited by the time the fund closes (if it is a ten year fund and a startup we have invested in hasn't had an exit) - what is the response? How do we disperse funds if the startups are still operating? Do we have to sell the shares we own in a private market or somehow the founders are required to show us returns or what happens if there is no liquidation?
1 See in Base
0
Most funds will request a 1 or 2-year extension at that point. Then, you may distribute the equity back to LPs or you may chose to liquidate in the secondary markets. 

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