What Happens to Capital Call Money Before It’s Invested?

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Asked by

Sushma Vadlamannati

Mar 27, 2025

General VC Questions

What Happens to Capital Call Money Before It’s Invested?

How is the money collected from a capital call treated before it is invested into startups? Does it accrue interest in a bank? What restrictions are imposed on that money - eg. can it be invested in crypto while the fund identifies the right startup to invest in?

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