deployment pace

Intermediate 🚀 Startup / VC

Definition

The speed at which a VC fund invests its committed capital. Deploy too fast and you look desperate; too slow and your LPs wonder if you can actually find deals.

Example Usage

The fund's aggressive deployment pace had them fully invested within 18 months, leaving no dry powder for follow-ons.

Origin

Military logistics terminology adapted to fund management

Fun Fact

The ideal deployment pace is 3-4 years, but in hot markets, FOMO causes funds to deploy in half that time, often with regrettable results.

Source: Institutional investment management and fund operations

Related Terms

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