Fund Structure
Committed Capital
The total amount LPs have legally agreed to invest in a fund — distinct from called capital (money already transferred to the fund).
Committed capital is the total amount that LPs have contractually pledged to a VC fund. It represents the fund's maximum investment capacity. Called capital (or paid-in capital) is the subset that has actually been transferred to the fund and deployed. The difference between committed and called capital is the fund's remaining dry powder — available for future investments and follow-ons. Management fees are typically calculated on committed capital (not called capital) during the investment period, which is why LPs are paying fees on capital they haven't yet transferred. Fund size is measured by committed capital. A $200M fund means LPs have committed $200M in total — though it may take 3-5 years to fully deploy.