What is a limited partner?

Short answer

A limited partner (LP) is an investor who commits capital to a venture fund but does not run the fund. The general partner (GP) manages the fund; the LP's liability is generally limited to their committed capital.

The longer version

LPs commit capital up front, and the GP calls that capital over the fund's investment period as deals close. LPs receive distributions as portfolio companies generate liquidity. LPs typically have information rights but do not direct individual investment decisions. LP status is governed by the fund's limited partnership agreement and applicable regulations.

When this applies

• When you want diversified exposure across a portfolio rather than picking individual companies.
• When you want to delegate sourcing, diligence, and portfolio management to a manager you have selected.