General Partners (GPs) and Venture Partners (VPs) are both senior-level roles within a venture capital (VC) firm, but they have distinct responsibilities, levels of commitment, and compensation structures. While GPs are the core, full-time leaders who make final investment decisions, VPs are typically part-time or project-based professionals who provide specialized expertise.
General Partner (GP)
A General Partner is a full-time, permanent member of the VC firm’s leadership team. They are the true decision-makers and carry the ultimate responsibility for the fund’s performance. Their role is comprehensive, spanning the entire lifecycle of a fund.
- Fund Management: GPs are responsible for raising capital from limited partners (LPs), such as pension funds and endowments. They manage the fund’s capital, oversee operations, and are legally and financially liable for the fund’s actions.
- Investment Decisions: They lead the investment committee, making final “yes or no” decisions on which startups to fund. They also determine follow-on investments and sit on the boards of portfolio companies to provide strategic direction.
- Compensation: GPs earn a combination of an annual management fee (typically 2% of the fund’s assets) and a share of the fund’s profits, known as carried interest (often 20%). Their compensation is directly tied to the overall success of the fund.
Venture Partner (VP)
A Venture Partner is a more flexible, often part-time role. VPs are brought in for their specific expertise, network, or deal-sourcing abilities without the full-time commitment and responsibilities of a GP.
- Deal Sourcing & Advising: A VP’s primary role is to find promising investment opportunities and bring them to the firm. They leverage their deep industry knowledge and network to provide strategic guidance to both the VC firm and the startups in its portfolio.
- Flexible Commitment: VPs are not involved in every aspect of fund management. Their work is often project-based, and they may be brought in for a specific period or to focus on a particular sector (e.g., AI, biotech, or fintech).
- Compensation: VPs typically do not receive a base salary but are compensated with a share of the carried interest on the specific deals they source or manage. In some cases, they may receive a retainer or a deal-by-deal fee. Their compensation is tied to the success of their individual contributions, not the entire fund.
Key Differences at a Glance
| Feature | General Partner (GP) | Venture Partner (VP) |
| Commitment | Full-time, permanent | Part-time, project-based |
| Responsibilities | Fund management, legal liability, fundraising, and final investment decisions | Deal sourcing, advising, and strategic guidance |
| Compensation | Management fees + Carried interest from the entire fund | Carried interest from specific deals (or a retainer) |
| Decision-Making | Has final authority on investment decisions | Does not have final say; serves as a scout or advisor |
| Board Seats | Often takes a board seat on portfolio companies | Rarely takes a board seat unless specified for a project |
