What is Drawdown?
Drawdown
A Drawdown is the actual transfer of committed capital from a fund's investors (LPs) to the fund managers (GPs) following a capital call.
Why It Matters for Startups
Directly dictates the cap table and dilution structure during fundraising; understanding Drawdown helps founders model equity distributions when structuring rounds for vc investment capital transfer tracking.
Detailed 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.
Frequently Asked Questions
Q:How is drawdown tracked?
As a percentage of the total fund size (e.g. "The fund is 40% drawn down after Year 2").
Q:Is drawdown the same as deployment?
Drawdown is the GP receiving capital from LPs. Deployment is the GP investing that capital into a startup.
Quick Facts
- CategoryFunding
- Key ApplicationVC investment capital transfer tracking
Coverage Trend12 Weeks
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