Limited Partner (LP)
Definition
Limited partners are the investors in a venture fund: endowments, pensions, funds of funds, family offices, and wealthy individuals who supply capital but stay passive.
How it comes up in fundraising
LPs are the VC’s customers; fund behavior (pacing, reserve discipline, exit pressure) traces back to LP commitments and expectations.
Frequently asked questions
Why should founders care about LPs?
A fund’s LP base shapes its patience and capacity: strong LP relationships mean future funds and follow-on money for you.
Can LPs invest directly in my startup?
Some do through co-investment programs, usually alongside the fund at larger stages.
Related terms
Put this term to work
Definitions win negotiations only when you are in one. Find the investors who fund your stage and start the conversation.
Browse the investor database