Raise Millions by Hustle Fund VC Page 128 they’ve committed to, the VC may need to make an additional capital call, which can take a few weeks or even months. Why does the process work like this? Imagine we received all $46M that we raised upfront and we issued a $50k check to a founder. That means $45,950,000 is left sitting in our checking account. That’s money not being put to work. Maybe not even earning any interest. That money could be back in our LPs’ hands to generate more cash. They can invest in index funds or real estate or something else as they wait for us to fund deals. It makes sense for VCs to not have all the money sitting idle in their bank accounts. But this means the capital call process takes time, and it’s often the most common reason for delays in founders receiving money from VCs. Every time a fund calls down money, they need to ● write an investment memo ● document why we’re investing ● inform our LPs that we have a deal that’s ready to fund Basically they’re asking their LPs “Please give us some money that we raised from you so we can fund this awesome startup.” Money is normally called down by percentages. So our fund admin (who manages cash flow) may tell our LPs that they want to call down 1% hustlefund.vc / @hustlefundvc