Have questions about the Start Fund?
Join an AMA on July 9th
Previous Post
Next Post
1

Asked by

Community Member

on

in

Fund Operations

Can LPs also be VPs?

Can LPs also be VPs?
2 See in Base
1

Answered by

Community Member

on

Yes, Limited Partners can serve as Venture Partners.
1

Answered by

Community Member

on

Yes, however there are several issues with having Limited partners be Venture Partners. First, Limited Partners will loose various protections because the Venture Partners make decisions for the fund. Second, this creates a challenge for the GP in situations where the VP doesn't deliver on expectations because it's difficult to fire a Venture Partner because they are also a Limited Partner.

Review the Venture Share agreement for details on VP compensation: https://govclab.com/venture-share/

Join VC Lab

VC Lab, the leading venture capital accelerator, empowers new and emerging managers worldwide to close ethical, high-performing funds in under six months. The program provides cutting-edge tools, expert mentorship, and a global network to raise more money in less time. Apply if you want to build a meaningful venture capital firm.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?