Ask AI
Log In Sign Up
Go to Venture Legal
Previous Question Next Question
1
Venture Legal

Can an LP also be a Venture Partner and if so what would the recommended carry be if they have dual roles of executive and fundraising?

Asked by: Anna Salim
2
0
Mar 08, 2025
2 answers
1
Mike Suprovici
Accepted Answer
Mar 08, 2025
Yes. However there are several issues with having Limited partners be Venture Partners. First, Limited Partners will loose various protections because the Venture Partners make decisions for the fund. Second, this creates a challenge for the GP in situations where the VP doesn't deliver on expectations because it's difficult to fire a Venture Partner because they are also a Limited Partner.

Review the Venture Share agreement for details on VP compensation: https://govclab.com/venture-share/
Add a comment
0
VC Lab Assistant
Decile Base AI
Mar 08, 2025
Yes, an LP can also be a Venture Partner. However, this could introduce conflicts of interest and may affect their limited partner status if they are involved in decision-making for the fund. The recommended carry for dual roles is not specified, but it is important to ensure that any compensation does not create broker-dealer issues. For detailed guidance, refer to VC Lab's Venture Share agreement.
Add a comment

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Log In
or
Sign Up

Apply to VC Lab Cohort 18

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 18
Related Questions
Can a Partner in One VC Firm Serve as a Venture Partner in Another While Assisting in Fundraising? 0 May 03, 2023 Can venture partners also be LPs? 0 May 03, 2023 Same LP / Venture Partner compensation 1 Sep 28, 2023 What is a common time period for LPs to have transferred the capital call amount after the call is made by the GP? Meaning cash is on the fund’s bank account. 1 Mar 25, 2025 What are the consequences for investors who fail to meet their capital call obligations, and how do funds typically handle such situations? 1 Mar 23, 2025

Decile Group Inc. uses cookies for our website to function properly; some are optional and help deliver a personalized and enhanced experience. By clicking "Allow all", you consent to store cookies on your device in accordance with our cookie policy. You can reject all non-essential processing by choosing to accept only necessary cookies. To learn more check Cookie Policy