I recently shared that I’m 49 and out of cash because a venture capital fund called capital much faster than I expected. I assumed a conservative 30% of my commitment would be called in year one. Instead, 46% was called in just six months.
On a $1 million commitment, that’s $460,000 out the door instead of $300,000. That’s a $160,000 timing gap, and a big one at that.
Besides tightening expenses, I offered three ways to cover the shortfall. But I missed one obvious option: taking on debt. A reader named Dave pointed it out:
“Get a PAL/LAL (pledged asset line) that allows the funding of capital calls. Or worst...
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