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Venture capitalists (VCs) typically get their funds from a group of investors known as Limited Partners (LPs). Here's a breakdown of the structure: 1. Limited Partners (LPs) These are the people or institutions who invest money into a VC fund. They include: Pension funds Endowments and foundations Family offices High-net-worth individuals Insurance companies Corporations Sovereign wealth funds 2. General Partners (GPs) These are the people who manage the VC fund. They decide: Which startups to invest in How much to invest When to exit an investment 3. VC Fund Structure LPs give money to the VC fund (typically locked in for 7–10 years). GPs manage and invest that money into startups. Profits from successful exits are shared: usually 80% to LPs and 20% to GPs (called "carried interest"). ----------------------------------------------- +-----------------------+ | Limited Partners | |-----------------------| | - Pension Funds | | - Endowments | | - Family Offices | | - HNW Individuals | | - Corporations | +----------+------------+ | | Capital (e.g., $100M) v +-----------------------+ | VC Fund (Managed by | | General Partners) | |-----------------------| | - Finds Startups | | - Invests Capital | | - Manages Portfolio | +----------+------------+ | | Investment (e.g., $1M-$10M) v +-----------------------+ | Startups | |-----------------------| | - Build Products | | - Scale Companies | | - Aim for Exit | +----------+------------+ | | Exit (e.g., IPO/Acquisition) v +-----------------------+ | Profits Returned | |-----------------------| | 80% to LPs | | 20% Carried Interest | | to GPs | +-----------------------+

VCs can raise from a lot id avenues, Lps Gps Funds of funds, etc. Piyush was right tbh. We don’t dream that big. Not necessarily deep tech but, we need to challenge the current big players at least

Vcs get funded from LPs, piyush Goyal was right to a lot of extent. MSMEs don’t necessarily raise huge amount of money and hence