The relationship between venture capitalists and founders is well discussed and understood. But another side is also critical in venture capital: the VC’s relationship with limited partners, or LPs—the ones providing the money that fund managers invest.
Both OpenLP and Notation Capital’s Origins podcast have done a good job shedding some light on the money behind the money. But any would-be venture capital fund manager, or entrepreneur looking for venture funding, can benefit from understanding the concept of “edge” in venture capital—the difference that makes a fund deliver above-average returns.
