General Partner (GP)

A General Partner (GP) is the venture capital firm itself, the entity that manages a fund's investments, sources deals, sits on portfolio company boards, and makes the day-to-day capital allocation decisions on behalf of its Limited Partners. The GP contributes a small share of the fund's total capital, typically 1 to 5 percent, known as the GP commitment, and in exchange earns both a management fee and a share of profits called carried interest.

How does a GP differ from an LP?

Where a Limited Partner supplies capital and has no say in individual investment decisions, the GP has full discretion over which companies the fund backs, when it exits, and how it votes on major portfolio decisions. This asymmetry is the core structure of nearly every venture fund, including Israeli firms such as TLV Partners and Vine Ventures.