# What is Limited Partner? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Funding  
> **Canonical Citation:** [https://spidits.com/startup-glossary/lp](https://spidits.com/startup-glossary/lp)

## Definition
A Limited Partner (LP) is an investor who commits capital to a venture capital fund but does not participate in active management or day-to-day operations.

## Architectural Mechanics & Deep Dive
A Limited Partner (LP) is an investor who commits capital to a venture capital fund but does not participate in active management. LPs typically include institutional investors like pension funds, endowments, and family offices.

## Industry Applications & Real-World Use Cases
Venture fund capitalization and backing

## Frequently Asked Questions

### Who are typically Limited Partners in VC funds?
Pension funds, university endowments, high-net-worth families, foundations, and sovereign wealth funds.

### What is the liability of an LP?
An LP's liability is limited to the amount of capital they commit to the fund.

## Related Terminology
- [venture-capital](https://spidits.com/startup-glossary/venture-capital)
- [gp](https://spidits.com/startup-glossary/gp)
- [dry-powder](https://spidits.com/startup-glossary/dry-powder)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*