A VCF’s lifespan is 8-12 years. It normally has an investment holding period of 4-6 years in each portfolio company. When the shareholding in the portfolio company is disposed-off the VCF realizes cash against the original investment. The “sales proceeds” are distributed among all, in proportion of their contribution to the fund. An individual investor does not have a say in the liquidation of the investments in the portfolio company. He or she gets a return only on “Exit“ by the VCF along with all other investors.