Business Pitch Dictionary by pitch.dog
Fundraising process & investor pipeline · Working

Reserve capital

Also called: reserves

ELI5

Money saved for later rounds in current investments.

Used in conversation

“Reserve capital limits how many new companies the fund can back.”

Definition

Fund capital held back for future investments in existing portfolio companies.

Here “Reserve capital” means: Fund capital held back for future investments in existing portfolio companies.

Pitch context

You will see “Reserve capital” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches fundraising process & investor pipeline.

Why it matters: In fundraising process & investor pipeline, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 6

Direct term-level sources and supporting source families.