VC venture capital in the financial industry, PE private equity, LP limited partner, GP General Partner

VC is venture capital.

PE is private equity, private equity.

Limited Partnership (LP) is translated as a limited partnership.
In a limited partnership, LP refers to the limited partner, who only invests in capital but does not participate in company management.
GP refers to a general partner who is responsible for investment management,
The two sides adopt a limited partnership.

The limited partnership system is provided by the Fund owner to the trade operator. investors obtain a part of the profit as agreed, but do not bear any loss beyond the capital contribution. If the operator is not at personal fault, investors may not demand the operator to be liable for the losses incurred by the investment.

Since the 20th century, venture capital has adopted a limited partnership (LP), which usually exists in the form of funds. Investors shall bear limited liability for the debt of the partner enterprise to the extent of capital contribution, and the fund manager shall manage the Fund as a general partner and bear unlimited liability for the debt of the partner enterprise. This not only reduces the risks of investors, but also promotes the value-added and diligent services of fund managers.