# What is Capital Call? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Funding  
> **Canonical Citation:** [https://spidits.com/startup-glossary/capital-call](https://spidits.com/startup-glossary/capital-call)

## Definition
A Capital Call (or drawdown) is the process by which a venture capital firm requests its Limited Partners to transfer a portion of their committed capital to fund an investment or cover fees.

## Architectural Mechanics & Deep Dive
A Capital Call (or drawdown) is the process by which a venture capital firm requests its Limited Partners to transfer a portion of their committed capital to fund an investment or cover fees.

## Industry Applications & Real-World Use Cases
VC fund operations and capitalization

## Frequently Asked Questions

### How much notice is given for a capital call?
Typically GPs give LPs 10 business days to transfer the requested cash.

### What happens if an LP defaults on a capital call?
They face severe penalties, including loss of their existing fund ownership and potential legal actions.

## Related Terminology
- [dry-powder](https://spidits.com/startup-glossary/dry-powder)
- [drawdown](https://spidits.com/startup-glossary/drawdown)
- [lp](https://spidits.com/startup-glossary/lp)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*