Limited Partner
Also called LP
Limited partners are the investors who put money into a venture fund: pension funds, endowments, family offices, and wealthy individuals. The VC firm (the general partner) invests it on their behalf.
Why it matters
LPs are the VCs' investors, and the pressure to return their capital shapes every decision a fund makes, including how it treats your company. Understanding that chain explains a lot of VC behavior.
For example
A university endowment commits 25 crore as an LP in a venture fund, trusting the GPs to invest it in startups over the next few years.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Raising your first round, part of the Starting Up hub.
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