Limited Partner (LP)
An investor in a venture fund, as distinct from the fund managers who deploy the capital.
Limited partners provide the capital a venture fund invests. They are typically pension funds, endowments, sovereign wealth funds, funds of funds, and wealthy families.
LPs commit capital but take no part in investment decisions — that is the general partners' role. Their limited liability and limited involvement are what the name refers to.
LP expectations shape fund behaviour. Because LPs expect returns within a fund's life, the pressure passes to portfolio companies as pressure for growth and exits on a timetable.