--- title: "LP / GP, Limited Partner / General Partner | MedTech Terms" description: "The two principal roles in a venture capital fund: LPs provide capital, GPs manage the fund and make investment decisions." lang: en json-ld: | { "@context": "https://schema.org", "@graph": [ { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/lp-gp#term", "name": "Limited Partner / General Partner", "alternateName": "LP / GP", "description": "Venture capital funds are typically organized as Delaware limited partnerships in which Limited Partners (LPs), pension funds, endowments, family offices, sovereign wealth funds, fund-of-funds, high-net-worth individuals, provide the capital, and General Partners (GPs), the venture firm's investment professionals, manage the fund. 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[Home](/) 2. / 3. [Terms](/terms) 4. / 5. [Investment & Finance](/terms?cat=Investment%20%26%20Finance) 6. / 7. Limited Partner / General Partner [All terms](/terms) Investment & Finance [Startup Lifecycle](/ecosystems/startup-lifecycle)LP / GP # Limited Partner / General Partner The two principal roles in a venture capital fund: LPs provide capital, GPs manage the fund and make investment decisions. Reviewed by [Christian Espinosa, Founder, Blue Goat Cyber](/authors/christian-espinosa) Last reviewed May 9, 2026 ## Definition Venture capital funds are typically organized as Delaware limited partnerships in which Limited Partners (LPs), pension funds, endowments, family offices, sovereign wealth funds, fund-of-funds, high-net-worth individuals, provide the capital, and General Partners (GPs), the venture firm's investment professionals, manage the fund. LPs have limited liability and limited management role; GPs have unlimited liability for fund obligations and earn management fees (typically 2% of committed capital annually) plus carried interest (typically 20% of profits above a hurdle). ## What this means in practice MedTech founders should understand LP composition because it shapes a fund's risk tolerance, hold period (typical 10-year fund life), and willingness to support follow-on rounds. Funds late in their investment period have less capacity for new investments and reserves. Common pitfalls - • Pitching a fund without checking where it sits in its investment period. - • Underestimating how LP composition (pension vs. family office) affects a GP's behavior in tough rounds. ## Related terms Grouped by theme ### Editor's picks · Hand-selected related concepts [ Investment & Finance Due Diligence Investigation of a company before an investment, financing, or acquisition. ](/terms/due-diligence)[ Investment & Finance Strategic Investor Corporate investor with operational, not just financial, motives. ](/terms/strategic-investor)[ Investment & Finance Term Sheet Non-binding outline of the key economic and control terms of an investment. ](/terms/term-sheet) ### More in Investment & Finance · Same category [ Investment & Finance 409A Valuation An independent fair-market-value appraisal of common stock used to set tax-compliant strike prices for employee stock options. ](/terms/409a-valuation)[ Investment & Finance Anti-Dilution Protection Adjustment that protects investors if the company raises a future round at a lower price. ](/terms/anti-dilution)[ Investment & Finance Bridge Round Interim financing between priced rounds, usually convertible. ](/terms/bridge-round)[ Investment & Finance Burn Rate Rate at which a company spends cash, typically expressed monthly. ](/terms/burn-rate) Cited by Where this term appears across MedTech Terms. Ecosystems (1) - [Startup Lifecycle](/ecosystems/startup-lifecycle) ## Primary references 3 sources Link health: 3 verified · last checked 2026-06-20 NVCA· 2 ILPA· 1 1. [1 NVCA, Venture Capital 101 Verified NVCA · nvca.org ](https://nvca.org/) 2. [2 ILPA Principles 3.0 Verified ILPA · ilpa.org ](https://ilpa.org/) 3. [3 NVCA Model Documents Verified NVCA · nvca.org ](https://nvca.org/model-legal-documents/) Inline markers like \[1\] jump to the matching reference above. Sponsor note ### Diligencing a MedTech cybersecurity posture? Blue Goat Cyber supports investors and acquirers with cybersecurity diligence on connected MedTech assets. [Book a 30-minute discovery session](https://go.bluegoatcyber.com/meetings/blue-goat-cyber/discovery-session) - No obligation - Expert-led from minute one - NDA available on request MedTech Terms is a community resource sponsored by [Blue Goat Cyber](https://bluegoatcyber.com). Definitions are independent of any vendor. On this term Category Investment & Finance Acronym LP / GP Sources 3 Updated 5/9/2026 [Compare with another term](/compare?a=lp-gp) Learn in 60 seconds Card Lesson Quiz The two principal roles in a venture capital fund: LPs provide capital, GPs manage the fund and make investment decisions. - · MedTech founders should understand LP composition because it shapes a fund's risk tolerance, hold period (typical 10-year fund life), and willingness to support follow-on rounds. - · Funds late in their investment period have less capacity for new investments and reserves. Remember this Watch out: Pitching a fund without checking where it sits in its investment period. Related terms - [Term Sheet ](/terms/term-sheet) - [Due Diligence ](/terms/due-diligence) - [Strategic Investor ](/terms/strategic-investor) You may also need Auto-suggested from Investment & Finance and shared keywords. - [Royalty Financing ](/terms/royalty-financing) - [Post-Money Valuation ](/terms/post-money-valuation) - [Series A / B / C Financing Rounds ](/terms/series-funding) - [Special Purpose Acquisition Company(SPAC) ](/terms/spac) - [Investigator-Initiated Trial(IIT) ](/terms/investigator-initiated-trial) - [409A Valuation ](/terms/409a-valuation) [All Investment & Finance terms](/terms?cat=Investment%20%26%20Finance) MedTech Terms An authoritative, plain-language reference for the regulatory, quality, cybersecurity, and software terms that shape modern medical devices. 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