Yes, it can be **0.0%**, but it is usually a **negative signal**.
- A GP commit is a **convention**, not a hard rule; even **below 1%** can be acceptable if it is honest and material relative to the GP’s means.
- But **0.0% means no direct economic alignment**, so many LPs will hesitate, especially if there is no strong substitute.
- Some LPs may still accept it if:
- the manager has exceptional track record or unique access
- economics are otherwise very LP-friendly
- governance and transparency are unusually strong
- there is a credible explanation for why the GP cannot commit capital
In practice, even a small real commit usually lands better than zero.
References:
- https://decilegroup.com/articles/gp-commit
- https://decilegroup.com/articles/venture-capital-transparency
- A GP commit is a **convention**, not a hard rule; even **below 1%** can be acceptable if it is honest and material relative to the GP’s means.
- But **0.0% means no direct economic alignment**, so many LPs will hesitate, especially if there is no strong substitute.
- Some LPs may still accept it if:
- the manager has exceptional track record or unique access
- economics are otherwise very LP-friendly
- governance and transparency are unusually strong
- there is a credible explanation for why the GP cannot commit capital
In practice, even a small real commit usually lands better than zero.
References:
- https://decilegroup.com/articles/gp-commit
- https://decilegroup.com/articles/venture-capital-transparency