What is gross profit (GP)?

The Gross Profit (GP) of a business is the accounting result obtained after deducting the cost of goods sold and sales returns/allowances from total sales revenue. GP is located on the income statement (sometimes referred to as the statement of profit and loss) produced by a company and used to determine a company’s gross margin.

What does a GP do in a venture fund?

GPs of venture funds generally have “skin in the game.” They invest their personal assets into their fund and are held personally liable for the debts and business of the firm. General partners also have two main responsibilities which are raising money from investors (called limited partners or “LPs”) and finding quality deals.

What is the difference between LP and GP?

An LP typically contributes to the fund’s capital with a view to achieving returns on their investment, while relying on the general partner (GP) to make all decisions regarding investments . This is the key difference between lp and gp. What is the difference between a general partnership and a limited partnership?