"cash pile" is somewhat misleading. When an LP "invests" $100M in a VC fund, said LP only sends a small fraction of that $100M at signing. The LP keeps the re

"cash pile" is somewhat misleading. When an LP "invests" $100M in a VC fund, said LP only sends a small fraction of that $100M at signing. The LP keeps the remainder until the fund does a capital call. Even then, that remainder isn't all sent at once. Funds do several capital calls during the investment phase. Note that management fees are WRT the paid-in capital, so VCs do have an incentive to get money invested.