Summary
LP (Limited Partner)
Limited Partners (LPs) are the lifeblood of the venture capital ecosystem. They are the investors in venture capital funds, providing the capital that GPs (General Partners) deploy into startups.
Unlike GPs, who are actively involved in the management of the fund, LPs typically have a more hands-off role, entrusting their capital to the GPs' expertise in sourcing and managing investments.
LPs can range from institutional investors like pension funds and endowments to high-net-worth individuals.
In some cases, LPs also act as co-investors alongside the VC fund, directly investing in a startup. This approach can amplify their gains but, on the flip side, exposes them to greater risk.
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