Investors invest in VC funds are Limited Patners ("LPs").
Investors are required to make a capital contribution which will be drawn down throughout the lifetime of the Fund in order to fund additional portfolio acquisitions.

Because VC funds are close-ended, investors are unable to redeem their subscriptions until the Fund is ultimately wound up, unless they can find an investor who will purchase their interest in the Fund.

Some VC funds afford investors additional protections such as ‘clawbacks’ and ‘hurdle rates’, which to ensure that fund managers are not paid excessive performance fees for sub-par performance.