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Accounting & Taxes

Is capital call of 20% something common?

Hi there,
It is for our exercise in the Venture Institute cohort 4 and I was wondering if this number of 20% is something common in the usual operation of a VC?
Thank you,
Natacha
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Answered by

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Yes, a capital call of 20% is common. Most funds call 20% or 25% of committed capital upon the first close. This is a typical practice in venture capital to manage fund liquidity and investment needs.
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Answered by

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Thank you for your response. I thought it was 2% of management fee which ends up to be 20% after 10 years of the investment! 

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