Who is a limited partner in a venture fund?

Such investors in venture funds are called limited partners (LPs). The word "limited" asserts their passive role with 'limited' say in a fund's operational activities. LPs include institutional investors (e.g., pension funds, foundations, endowments, banks and insurance companies) and family offices and high-net-worth individuals (HNWIs).

What is the role of a limited partner in venture capital?

Limited partners (LPs) play a crucial role in the world of venture capital, providing the necessary capital for investments. As passive investors, LPs do not have control over the day-to-day operations of the venture fund. Instead, they entrust the management of the fund to the general partners (GPs).

What is a limited partner?

Limited Partners (LPs) are investors in your fund that provide capital. The most common types of LPs are high net worth individuals, pension funds, family offices, sovereign funds and insurance companies – just to name a few. They can be individuals or corporate entities themselves, but are nonetheless called LPs by you and your team.