An investment window is the period when a fund makes its initial investments. In venture capital, that window limits how quickly partners must evaluate opportunities and deploy committed capital. section 9.2
A five-year capacity constraint
Consider a $250 million fund with four partners and a five-year investment window. If each partner makes one or two investments yearly, the fund completes roughly 20–40 investments. At a Series A ceiling of $5 million per investment, about 25 investments may be possible. Each investment can require reviewing 20 opportunities, creating roughly 500 opportunities to assess while partners also support portfolio companies and communicate with LPs. section 9.2
The window makes several venture-capital pressures visible:
- Fund size alone does not increase the time each partner can spend on a new investment. section 9.2
- Most reviewed opportunities are rejected; the example estimates about 95 percent. section 9.2
