GP
General Partner
Definition
General Partners (GPs) are the managing partners of a venture capital fund who make investment decisions, manage the portfolio, and earn carried interest (typically 20%) on fund profits.
In Simple Terms
GPs are the VCs you think of—the partners at Sequoia, Andreessen, Bessemer. They decide which startups to invest in, sit on boards, help founders, and get 20% of fund profits (carry) as compensation.
Why It Matters
GPs are the decision-makers in venture capital. Their track record, network, and expertise determine fund performance. When raising from VCs, you're essentially hiring them as strategic partners. Their influence far exceeds their equity stake.
Example
At Andreessen Horowitz, partners like Marc Andreessen and Ben Horowitz are GPs. They source deals, lead rounds, join boards, and earn carry on the fund's $7B in assets under management.