Locked-up capital in social VC – how bad is it really?
The biggest thing holding me back from social venture capital is the long lock-up periods. How painful is it to have money tied up for 8–12 years? Any ways around it?
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Strawbarry Team
yesterday
It's definitely illiquid—no sugarcoating that. You can't pull money out easily, so only use capital you won't need for a decade+. That said, many funds now offer limited secondary windows after year 4–5, and some have feeder structures with shorter terms for certain vintages. In my case, I planned it as a long-term bucket alongside more liquid assets. The patience has paid off so far because the better companies keep growing steadily. If you're worried about liquidity traps, look for funds with strong secondary market activity or clear distribution policies. This recent piece discusses realistic liquidity expectations in social VC and which approaches are more investor-friendly: https://tennews.in/social-venture-capitalist-reviews-is-online-investing-without-tricks-possible/ It gave me a clearer picture of what "long-term" actually feels like in practice.
It's definitely illiquid—no sugarcoating that. You can't pull money out easily, so only use capital you won't need for a decade+. That said, many funds now offer limited secondary windows after year 4–5, and some have feeder structures with shorter terms for certain vintages. In my case, I planned it as a long-term bucket alongside more liquid assets. The patience has paid off so far because the better companies keep growing steadily. If you're worried about liquidity traps, look for funds with strong secondary market activity or clear distribution policies. This recent piece discusses realistic liquidity expectations in social VC and which approaches are more investor-friendly: https://tennews.in/social-venture-capitalist-reviews-is-online-investing-without-tricks-possible/ It gave me a clearer picture of what "long-term" actually feels like in practice.