Definition
Capital Call
A request from the sponsor to LPs to fund their committed capital.
A capital call is a request from the SPV sponsor to limited partners to wire previously-committed capital into the SPV's bank account. In most one-off venture SPVs, all capital is called at once at close (a single 100% call). Larger or multi-investment SPVs sometimes use staggered capital calls. Failure to fund a capital call typically results in dilution, forfeiture of the LP's interest, or other remedies spelled out in the operating agreement.