# Limited partner

Concept · [Fundraising and equity](https://ecosystem.samcarlton.com/fundraising)

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

An investor who puts money into a [venture fund](https://ecosystem.samcarlton.com/venture-capital). 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](https://ecosystem.samcarlton.com/venture-capital) as a limited partner. The general partners invest that money, along with other limited partners' money, in 25 startups.

## Connects to (5)

- [Venture capital](https://ecosystem.samcarlton.com/venture-capital): Money that professional investment firms put into young companies in exchange for equity.
- [Portfolio](https://ecosystem.samcarlton.com/portfolio): The set of companies that an investor has funded, or that a program supports.
- [Accredited investor](https://ecosystem.samcarlton.com/accredited-investor): A person or organization that meets tests set by the US securities regulator, the SEC, based on income, net worth or professional…
- [Exit](https://ecosystem.samcarlton.com/exit): The moment when founders and investors can turn their shares into cash.
- [Private equity](https://ecosystem.samcarlton.com/private-equity): Investment firms that buy stakes in, or all of, established private companies, usually aiming to improve them and sell later at a profit.

> 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.

Map view: https://ecosystem.samcarlton.com/limited-partner