Limited partner

Also called: LP, LPs, limited partners, general partner, GP, GPs, fund investor

An investor who puts money into a venture fund. The fund's managers, called general partners, choose the startups. Limited partners do not make those decisions.

For example: A foundation pledges 5 million dollars to a venture fund as a limited partner. The general partners invest that money, along with other limited partners' money, in 25 startups.

Connects to 5

Venture capital Concept
Portfolio Concept
Accredited investor Concept
Exit Concept
Private equity Concept

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.