Roles & People
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Quick Answer
The managing partner(s) of a venture fund — responsible for investment decisions, fund management, and bearing unlimited liability for fund obligations.
A General Partner (GP) is the investment professional responsible for managing a venture capital fund. GPs make investment decisions, manage LP relationships, serve on portfolio company boards, and are responsible for all aspects of fund operations. Legally, GPs have unlimited personal liability for fund obligations (though in practice the fund is structured to minimize this exposure). GPs receive management fees (typically 2% of AUM annually) to cover operations and take carried interest (typically 20% of profits) as performance compensation. Most VC firms have multiple GPs; decision-making processes vary — some require consensus, others give individual partners autonomy up to certain check sizes.
In Practice
Sarah Chen raises a $100M early-stage fund as the lead GP of Apex Ventures. She personally signs the fund's legal documents, making her liable for any fund obligations. When portfolio company TechCorp needs a bridge round, Sarah makes the investment decision and negotiates terms. She also manages LP relations, ensuring quarterly reports go out to pension funds and family offices who invested in her fund. Unlike the fund's associates or principals, Sarah has full authority to write checks and sits on portfolio company boards.
What good looks like
Why It Matters
Understanding GP structure is crucial because GPs hold all the decision-making power in VC funds. As a founder, knowing who the actual GPs are tells you who can say 'yes' to your deal versus who needs approval. For aspiring VCs, the GP track is the only path to true investment authority and carried interest upside. Limited Partners need to evaluate GP experience and alignment since these individuals control their capital deployment.
VC Beast Take
Most people don't realize that becoming a GP is less about promotion and more about assuming massive personal liability. The industry is seeing more 'GP-lite' roles emerge — principals with investment authority but limited fund liability. It's creating confusion about who actually runs funds.
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What are the different roles at a VC firm?
VC firms have a hierarchy: Analyst → Associate → Principal/VP → Partner → General Partner. Decision-making and carry concentrate at the GP level.
What is a side letter in venture capital?
A side letter is a private agreement between a VC fund's GP and a specific LP that grants that LP special terms not available to other investors — like lower fees, co-investment rights, or additional reporting.
What is carried interest and how does it work?
Carried interest — or "carry" — is the share of a fund's profits that go to the general partners (GPs) as compensation for managing the fund. It's typically 20% of profits above a certain threshold, and it's the primary way VCs get rich.
What is the difference between a GP and an LP?
A GP (General Partner) manages the fund — they make investment decisions, sit on boards, and earn carried interest. An LP (Limited Partner) provides the capital but has no management role. GPs run the show; LPs are the silent money.
A General Partner (GP) is the investment professional responsible for managing a venture capital fund. GPs make investment decisions, manage LP relationships, serve on portfolio company boards, and are responsible for all aspects of fund operations.
Understanding General Partner (GP) is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
General Partner (GP) falls under the roles category in venture capital. This area covers concepts related to the people and positions that make up the venture capital ecosystem.
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