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Funding & Investment

General Partner

Also Known As

GPFund ManagerManaging Partner

A General Partner (GP) is the managing partner of a venture fund who makes investment decisions, manages portfolio companies, and has unlimited liability for the fund's obligations.

What is a General Partner?

General Partners are the fund managers who run venture capital funds. They raise capital from Limited Partners, decide which companies to invest in, serve on boards, and work to generate returns. In venture studios, GPs also oversee company creation.

GP Responsibilities

  1. Fundraising: Raising capital from LPs
  2. Deal Sourcing: Finding investment opportunities
  3. Due Diligence: Evaluating potential investments
  4. Investment Decisions: Deciding what to fund
  5. Portfolio Support: Helping companies succeed
  6. Exits: Generating returns through IPOs/acquisitions
  7. Reporting: Communicating with LPs

GP Economics

  • Management Fee: 2% of fund annually (covers operations)
  • Carried Interest: 20% of profits above preferred return
  • GP Commitment: Personal investment (1-5% of fund)

GPs in Venture Studios

Studio GPs have additional responsibilities:

  • Overseeing ideation and validation
  • Recruiting and supporting founders
  • Managing shared services
  • Building studio culture and processes

Example Usage

“As a GP at the venture studio, she was responsible for both fund investments and company building.”

More Funding & Investment Terms

Pre-Seed Funding

Pre-seed funding is the earliest stage of external startup financing, typically used to validate an idea, build an initial prototype, or support founders before product-market fit.

Seed Funding

Seed funding is the first significant round of venture capital financing, typically raised after initial product validation to hire a team, develop the product, and achieve early growth milestones.

Series A

Series A funding is typically the first major venture capital round after seed, raised when a startup has proven its business model and is ready to scale operations, team, and customer acquisition.

Limited Partner

A Limited Partner (LP) is an investor who commits capital to a venture fund (including venture studio funds) but has limited liability and no involvement in day-to-day investment or operational decisions.

Carried Interest

Carried interest (or "carry") is the share of investment profits—typically 20%—that General Partners receive as compensation after returning invested capital to Limited Partners.

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