Limited Partner (LP)
An investor in a venture fund whose liability is limited to the amount they invest. LPs commit capital that fund managers (GPs) deploy into startups.
Informational only. This page is for informational purposes only and is not an offer to sell or a solicitation to buy any security. Any investment opportunity, if available, would be made only through appropriate private offering materials and subject to investor qualification, legal review, and applicable requirements.
Why it matters
Understanding what an LP is — and what an LP is not — is foundational to evaluating venture funds and the relationships involved.
Example
A family office commits capital to a venture fund as an LP; the fund's GP makes individual investment decisions over the fund's life.