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Capital Call Definition

capital call – n: the legal right of a firm to call, or demand, a portion of the money committed to it by an investor under a previous capital commitment; the act of making such a call. For example, when a venture capital firm (general partner, or G.P.) has received capital commitments from its limited partner (L.P.) investors for a venture capital fund, and decides to invest in a portfolio company, the VC makes a capital call to its L.P. investors in order to fund the new portfolio investment.

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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