General Partners vs Limited Partners in venture capital firms?


What's the difference between GPs and LPs at VC firms? Is one better to try to approach than the other when trying to raise money from their firm?

Partner Venture Capital Money

asked May 16 '14 at 13:12
Terri Hale
2 points
Get up to $750K in working capital to finance your business: Clarify Capital Business Loans

1 Answer


VC firms are a group of General Partners that have raised an investment fund from Limited Partners -- educational institutions, foundations, wealthy individuals, and major businesses. LPs are a VC firm's backers; they're not making investment decisions in the companies themselves. The GPs are running the firm. They're active investors that are watching different markets and choosing companies to invest in that match their investment strategy.

As a startup founder, anytime you're thinking of a partner at a VC firm, you're thinking of a General Partner. They're the ones you're trying to reach; preferably through a direct introduction, but sometimes through meeting a VC firm's associates, who at many firms are the ones actively going to events and otherwise 'sourcing deals' (finding companies).

Venture Hacks has a good article about how VC firms and Limited Partners interact: (among many other great articles for founders looking to raise money).

answered May 19 '14 at 18:08
Jay Neely
6,050 points

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Partner Venture Capital Money