---
title: "What Is Investment Committee (IC)?"
term: "Investment Committee (IC)"
description: "The investment committee is the group within a venture or private equity firm that votes to approve or reject deals — typically senior partners with authority to commit fund capital."
date: 2026-07-25T00:00:00.000Z
updated: 2026-07-25T00:00:00.000Z
topics: ["venture-capital"]
source: https://venturecapitaltracker.com/glossary/investment-committee-ic
---

# What Is Investment Committee (IC)?

> The investment committee is the group within a venture or private equity firm that votes to approve or reject deals — typically senior partners with authority to commit fund capital.

**The investment committee (IC)** is the governing body within an investment firm — usually comprising senior partners — that formally approves or rejects proposed investments.

## How it works

After diligence, the sponsoring partner presents the opportunity to IC using an [IC memo](/glossary/ic-memo). IC meetings may be weekly or ad hoc for competitive deals. Voting rules vary: unanimous consent, majority, or lead-partner veto rights on their sector. IC can approve, reject, or request additional diligence — customer references, expert calls, revised terms. Some firms delegate smaller checks below a threshold without full IC. Rejected deals may resurface if circumstances change. IC also reviews follow-on investments, reserves, and exits. For founders, the path is typically: associate screen → partner meeting → diligence → IC → term sheet. IC rejection after positive partner feedback is common and frustrating but structurally normal.

## Why it matters

- **Founders:** Ask your sponsor about IC timing and process. Provide materials that answer likely partner objections before the meeting.
- **Investors:** IC structure prevents rogue deals and creates accountability. Firms with weak IC discipline often show inconsistent portfolio quality.

## Common mistake

Assuming one champion partner can bypass IC. Even managing partners at large firms usually need IC buy-in for fund investments.

## Related ideas

[IC memo](/glossary/ic-memo), [hard circle](/glossary/hard-circle), partner vote, and investment policy statements define IC workflow.

## FAQ

### What is an investment committee in simple terms?

It is the partnership group at a VC firm that must vote yes before the firm can invest. One partner may love your company, but IC approval is usually required to write the check.

### Why does the investment committee matter?

For founders, IC is the final gate in a process that can take weeks after initial partner meetings. For firms, IC enforces discipline and documents why capital gets deployed.


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Source: https://venturecapitaltracker.com/glossary/investment-committee-ic