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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priced equity round

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Whitewash

When founders get a waiver from anti-dilution adjustments because they dilute themselves (or the math is too ugly). Technical term for 'let's not do this.'

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exit

In startup land, the glorious moment when founders and investors finally cash out, either through acquisition or IPO, turning years of ramen dinners and sleepless nights into actual money. It's the entrepreneurial equivalent of winning the lottery, except you had to build the lottery first. Every VC's favorite word and every founder's obsession after their Series A.

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runway extension

Actions taken to make existing capital last longer, typically through cost-cutting, down-rounds, or revenue generation—whatever keeps you alive until the next funding round. Financial life support for startups.

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Series A, B, C, D

Sequential rounds of venture funding with progressively larger checks and increasingly skeptical investors asking harder questions.

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Acceleration (Equity Acceleration)

A clause that speeds up your equity vesting if certain events happen, like acquisition or being fired without cause. It's supposed to protect you but usually just makes the acquisition price higher.

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