What is a limited partner in venture capital?

Limited partners are the investors in venture funds: pensions, endowments, foundations, sovereign funds, funds of funds, family offices, and wealthy individuals. They commit capital that GPs draw down over the fund's life, and their liability is limited to their commitment.

LPs choose managers, not startups: their diligence is the fund's track record, strategy, and team. Public-institution LPs disclose fund performance in their reports — one of the few windows into venture returns.