Roles & People
Limited Partner (LP)
An investor in a venture fund who provides capital but has limited liability and no role in investment decisions.
Limited Partners (LPs) are the investors behind VC funds — they commit capital that GPs deploy into startups. LPs have no say in investment decisions and their liability is limited to their committed capital (hence 'limited' partner). Common LP types: university endowments (Harvard, Yale, Stanford), pension funds (CalPERS, OTPP), sovereign wealth funds, family offices, foundations, fund of funds, and high-net-worth individuals. LPs typically commit for 10 years or longer, making VC an illiquid investment. LPs evaluate GPs based on track record, team stability, strategy, and market opportunity. The LP-GP relationship is one of the most important in the VC ecosystem — unhappy LPs won't commit to future funds.