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Community Member
Accepted Answer
Decile Base AI
Jun 17, 2024
Assessing capital requirements is the first step in a capital call process for a venture capital fund. Fund managers determine the need for additional capital, which may arise due to new investment opportunities or ongoing fund expenses, such as management fees, legal and accounting fees, and other operational costs. This assessment is crucial to ensure the fund has sufficient capital to meet its investment objectives and cover its expenses.