> For the complete documentation index, see [llms.txt](https://rhys-nemo.gitbook.io/tokenomics-bible/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rhys-nemo.gitbook.io/tokenomics-bible/vcs/sidecar.md).

# Sidecar

**Side car -** A strategy in which one investor allows a second investor to control how to invest their capital. A sidecar investment occurs when one of the parties lacks the ability/confidence to invest for themselves.

{% embed url="<https://www.angelcapitalassociation.org/data/ACANewsletter/2-11/Side%20Car%20Funds%20-%20An%20Introduction%20-%20Foley%20Hoag%202-11.pdf?rev=C027>" %}

Example use case&#x20;

* VC fund has reached their maximum number of investors
* The VC wants to onboard new investors to increase their investment liquidity
* The VC sets up a "Sidecar" fund for angle investors to pool thier money together&#x20;
* The Sidecar delegates investment to the VC
* Subsequently, the VC has increased their liquidity & number of investors without increasing the size of the fund<br>

Note - 50 in sidecar