# Dry Powder

*Startups & Venture Capital — Finicade finance glossary*

Dry powder is committed capital a fund has not yet invested. Industry-wide totals are watched as a proxy for future deal pressure: large uncalled balances mean competition for assets and, usually, higher entry prices. It also carries a deadline — most funds have an investment period of around five years, after which uncalled commitments lapse, which is a real incentive to deploy.

**Also known as:** uncalled capital, undeployed capital

**Related terms:** [Limited Partner](https://finicade.com/glossary/limited-partner), [General Partner](https://finicade.com/glossary/general-partner), [Fund Vintage](https://finicade.com/glossary/fund-vintage), [Private Equity](https://finicade.com/glossary/private-equity), [Venture Capital](https://finicade.com/glossary/venture-capital)

Source: https://finicade.com/glossary/dry-powder