She Has Leverage

Portfolio strategy concepts

Reserves

Reserves are the capital a fund plans to use for follow-on investments in its existing portfolio companies. The amount and deployment rules depend on the fund’s strategy and documents.

Example: A fund may hold part of its investable capital for later rounds rather than use it all for initial checks.

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Knowing the language helps you follow the conversation. Knowing what to ask is how you participate in it.

Understanding the terms is a first step. The Aligned Capital Program uses them to teach you how to evaluate a fund and prepare the questions to ask its manager.

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