GP (General Partner)

Definition

The person(s) running a VC fund who make investment decisions and get a slice of the profits. They're the ones who take credit for wins and explain away losses.

Example Usage

The GP of our lead fund is a famous entrepreneur who exited for $500M and now claims all his success was due to vision rather than luck.

Origin

Legal partnership terminology, standardized in venture capital

Fun Fact

GPs typically charge 2% management fees annually (called 'carry') and take 20% of profits (called 'management fees'), making them profitable regardless of investment performance

Source: Venture capital terminology

Related Terms

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A referral to an investor through a trusted mutual connection, as opposed to cold outreach. The difference between getting a response and having your email automatically archived.

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Intermediate

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Measurable signs that customers actually want your product—the startup equivalent of a pulse check.

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Scale

The startup obsession with growing bigger, faster, and more unsustainably, as if a company were a goldfish and the market were an ocean. Everyone wants to scale, few know how, and most just end up spending more money to lose money at an impressive rate.

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Intermediate

Series B, C, D (and beyond)

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valuation cap

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grayhair

An experienced executive or advisor brought into a startup to add operational credibility and grown-up supervision to a young founding team. Think adult daycare, but for unicorn hopefuls.

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