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| Resources for Entrepreneurs | Entrepreneur's Glossary | ||||
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Capital Call
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Definition of Capital CallCapital Call is the legal right of a firm to call, or demand, money promised by an investor in a previous capital commitment.
A capital call is sometimes referred to as a "draw down." For example, a venture capital fund might approach its investors in order to "draw down" the money that they need to make an investment. The money provided via a capital call will already have been committed to the fund. The capital call is simply the act of actually conveying the promised funds to the the investment target. Terms for a capital call are defined in a contract known as a capital call agreement. If you are an ambitious entrepreneur or an aspiring executive looking to get involved with a startup, please take the time to learn more about Gaebler Ventures.
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