# What is Drawdown? Definition & Technical Mechanics

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

## Definition
A Drawdown is the actual transfer of committed capital from a fund's investors (LPs) to the fund managers (GPs) following a capital call.

## Architectural Mechanics & Deep Dive
A Drawdown is the actual transfer of committed capital from a fund's investors (LPs) to the fund managers (GPs) following a capital call.

## Industry Applications & Real-World Use Cases
VC investment capital transfer tracking

## Frequently Asked Questions

### How is drawdown tracked?
As a percentage of the total fund size (e.g. "The fund is 40% drawn down after Year 2").

### Is drawdown the same as deployment?
Drawdown is the GP receiving capital from LPs. Deployment is the GP investing that capital into a startup.

## Related Terminology
- [capital-call](https://spidits.com/startup-glossary/capital-call)
- [dry-powder](https://spidits.com/startup-glossary/dry-powder)
- [venture-capital](https://spidits.com/startup-glossary/venture-capital)

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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)*