Fund Structure
Portfolio Company
A startup that a VC fund has invested in and holds in its portfolio.
A portfolio company is any company in which a VC fund has made an investment. The fund's portfolio is the collection of all such investments. Portfolio companies are actively managed by the fund: GPs serve on boards, make introductions, help recruit, and provide strategic guidance. Portfolio management — knowing when to double down, when to support through bridge rounds, and when to accept a write-down — is as important as deal selection in determining fund returns. Portfolio companies range from new investments (where the fund still has a full expected holding period) to mature investments approaching exit (where the fund is focused on maximizing exit value). Most funds hold 20-50 portfolio companies across their investment period.