Let's start by looking at the structure of a venture capital fund. A VC fund is a collective group of limited partners or LPs and a general partner or GP that invest their capital through a VC fund. The invested capital is used to seek out, invest, develop, and ultimately sell or IPO, their portfolio companies or port-cos to generate a return on initial invested capital. Similar to a PE fund. The VC fund is structured as a limited partnership. General partners or GPs manage the fund and serve as advisors and sometimes board members to the fund's portfolio companies, investors in the fund are limited partners.