#9TDAYVC-DAY-11 📌What is Dry Powder? 📌What is Draw Down Amount? 🎯Drawn Down Amount & Dry Powder: Drawn Down Amount is the amount that has been Invested into the Bank account & Dry Powder is the commitment capital which will be invested. Example- Commitment Capital is 1000 Crores, If they drawn around 650 Crores then 350 Crores is Dry Powder Amount. 🎯Sometimes, investors need to give money to a fund manager. This is called a "capital call" or "drawdown." The fund manager sends a notice telling investors when to pay and how to pay. Investors must have the money ready during this period.Sometimes, not all the money is collected. This might happen if the fund manager can't find enough investors or if some investors can't pay on time. If an investor can't pay, they might lose their rights under the investment agreement. The fund manager could reduce their investment amount, charge them interest, or even end the agreement and return their money. For more about VC, Links👇
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