First Close

The first close is the point at which a fund's initial group of LPs is legally admitted and the GP can start calling capital and doing deals. Most venture funds then hold rolling closes for 12-18 months until final close, with later LPs typically trued up as if they had joined at the start. For a Fund I, momentum to a credible first close — often anchored by one or two larger LPs — is the hardest part of the raise.