rolling fund

Definition

A venture fund structure where capital commitments are made quarterly rather than in one large closing, allowing GPs to start investing immediately. The subscription model comes to venture capital.

Example Usage

Instead of raising a traditional $50M fund, she launched a rolling fund that onboards new LPs every quarter.

Origin

Popularized by AngelList and SEC rule changes in 2020

Fun Fact

Rolling funds democratized VC by lowering minimum commitments to as little as $25K per quarter, though traditional VCs argue it's just micro-funds with better marketing.

Source: Modern venture capital structures and SEC regulatory frameworks

Related Terms

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captive VC

A venture capital fund owned and operated by a larger corporation to invest in strategically relevant startups. They bring money and potential acquisition interest, but everyone knows who they're really working for.

🚀 Startup / VC

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commercialization

The process of taking an idea, product, or technology and transforming it into something that actually makes money, because apparently innovation for its own sake doesn't pay the bills. It's the startup world's coming-of-age ceremony, where brilliant concepts either become profitable products or expensive lessons. Essentially, it's the bridge between "we built something cool" and "people are actually buying it."

🚀 Startup / VC

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dragalong rights

A provision forcing minority shareholders to join a sale if majority shareholders approve it, preventing holdouts from blocking acquisitions. Democracy dies in shareholder agreements.

🚀 Startup / VC

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drag-along

Rights allowing majority shareholders to force minority shareholders to join in selling the company. Corporate democracy's escape hatch, where your vote doesn't matter if enough people with more shares decide differently.

🚀 Startup / VC

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innovative

The adjective slapped on every product, service, and startup pitch deck to signal 'we're doing something allegedly new.' Something innovative is supposed to be groundbreaking and forward-thinking, though these days it often means 'we added AI to it.' If your company isn't innovative, you're basically admitting you're stuck in 2005 with a flip phone.

🚀 Startup / VC

Advanced

burn multiple

A capital efficiency metric calculated as net burn divided by net new ARR, measuring how many dollars a company incincinerates to generate each dollar of recurring revenue. A burn multiple under 1.5x suggests efficiency; above 3x suggests a bonfire of investor capital.

🚀 Startup / VC

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