24 LPs Actively Investing in Venture Capital Funds
Venture capital firms may get all the attention, but behind every major VC fund is a group of investors quietly supplying the capital - Limited Partners (LPs).
LPs don’t scout deals, sit on startup boards, or make investment decisions. Instead, they commit money to VC funds and trust the General Partners (GPs) to turn that capital into high returns.
So who are these behind-the-scenes power players? They range from pension funds and university endowments to sovereign wealth funds and high-net-worth individuals. While their roles may be passive, their decisions shape the future of venture capital by determining which funds get backed and which startups ultimately receive funding.
This article breaks down who LPs are, why they invest in venture capital, how they choose funds, and 24 key LPs currently funding VC firms.
What Are Limited Partners (LPs)?
Limited Partners (LPs) are investors who provide capital to venture capital (VC) funds but play a passive role in their operations. They are an essential part of the VC ecosystem, as their funding enables VCs to invest in startups and drive innovation.
Unlike the General Partners (GPs) who actively manage the fund, LPs have no say in daily operations or investment decisions. Instead, they rely on the expertise and strategy of the GPs to generate returns on their investments.
Types of Limited Partners
LPs can come from a variety of backgrounds, each with unique motivations and strategies for investing in VC funds:
Family Offices
Wealthy families seeking to diversify their portfolios by investing in high-growth startups.
Pension Funds
Institutions that allocate a small percentage of their funds to venture capital for higher returns.
Endowments and Foundations
Universities and nonprofit organizations investing for long-term financial sustainability.
Sovereign Wealth Funds
Government-owned funds that often invest in VC to support innovation and economic growth.
High-Net-Worth Individuals
Accredited investors who want exposure to venture capital opportunities.
Why LPs Invest in VC Funds
LPs choose to invest in venture capital for several reasons:
- High Growth Potential: VC funds provide exposure to startups that could generate outsized returns compared to traditional asset classes.
- Portfolio Diversification: Venture capital investments reduce risk by diversifying holdings across various sectors and stages.
- Long-Term Gains: While VC is a high-risk asset class, the potential for significant returns over time is attractive to LPs with a high risk tolerance.
How LPs Choose Venture Capital Funds: Key Metrics and Strategies
Limited Partners (LPs) are meticulous when evaluating venture capital (VC) funds, ensuring their investments align with their financial goals, risk tolerance, and broader strategic objectives. One of the primary factors LPs consider is performance metrics.
Historical returns, such as Internal Rate of Return (IRR) and Multiple on Invested Capital (MOIC), serve as benchmarks for gauging a fund’s track record. A strong performance history reassures LPs that the VC firm can deliver consistent returns over time, making it a safer and more attractive investment opportunity.
Another critical criterion for LPs is the sector focus of the VC fund. Some LPs are drawn to funds that specialize in high-growth industries like fintech, biotech, or SaaS, where they see significant potential for outsized returns.
These preferences are often influenced by the LPs’ own expertise or strategic interests, as they may aim to leverage their knowledge to maximize the value of their investment. For instance, a family office with deep roots in healthcare might prioritize funds that invest heavily in biotech startups.
The reputation and experience of the fund’s management team also play a pivotal role in an LP’s decision-making process. Fund managers with a proven track record, strong relationships within the venture ecosystem, and the ability to source high-quality deals are more likely to attract LP investments.
LPs often view the fund’s leadership as a key indicator of future success, relying on their expertise to navigate the complexities of venture investing.
Lastly, the overall strategy of the VC fund is a major consideration. Whether the fund targets early-stage startups, focuses on scaling growth-stage companies, or operates as a sector-agnostic investor, LPs evaluate how well this approach aligns with their own investment priorities.
Successful LP-VC partnerships often result from a clear alignment between the fund’s strategy and the LP’s long-term goals, creating a mutually beneficial relationship. Through a combination of data-driven evaluation and strategic alignment, LPs ensure their capital is placed in funds that offer the best potential for growth and returns.
24 Limited Partners Investing in VC Funds
1. Foundry
Foundry focuses on partnering with startups and venture funds that embody a "give first" philosophy. The firm is known for its collaborative approach and strong emphasis on community building within the startup ecosystem, fostering meaningful relationships to drive growth.
Contact information:
Seth Levine, Partner - seth@foundry.vc
Jaclyn Freeman Hester, Partner - jaclyn@foundry.vc
2. Wellcome Trust
Wellcome Trust is one of the largest global charitable foundations, with a focus on advancing health research and innovation. Their investments span healthcare-focused assets, with the aim of supporting breakthroughs that address pressing global health challenges.
Contact information:
3. Point72
Point72 is a global asset management firm that invests in public and private markets. The firm specializes in long/short equity, systematic strategies, and private markets, using data-driven insights to generate returns for its investors.
Contact information:
inquiries@point72.com
4. Blackstone
Blackstone is one of the world’s largest alternative asset managers, overseeing $975 billion in assets under management. They focus on private equity, real estate, credit, and infrastructure, leveraging their resources to create long-term value.
Contact information:
Telephone: +1 (212) 583-5000
5. StepStone Group
StepStone Group specializes in building customized private market portfolios for institutional investors. They provide access to venture capital, private equity, real estate, and infrastructure investments worldwide.
Contact information:
6. GIC
GIC is Singapore's sovereign wealth fund, managing the country's foreign reserves. The fund invests across asset classes globally, with a focus on generating long-term returns to preserve and enhance Singapore's wealth.
Contact information:
7. Recast Capital
Recast Capital supports emerging venture capital managers, focusing on diverse leadership and innovative investment approaches. They provide funding and guidance to foster inclusivity and innovation in venture capital.
Contact information:
8. MacArthur Foundation
The MacArthur Foundation invests in organizations and initiatives that promote a more just, verdant, and peaceful world. Their impact spans areas such as climate change, education, and social justice.
Contact information:
9. Plexo Capital
Plexo Capital invests in venture funds and early-stage startups, with a focus on creating opportunities for underrepresented founders and managers. They aim to shape the future of technology and innovation.
Contact information:
10. Partners Group
Partners Group is a global private markets investment manager, offering expertise in private equity, real estate, infrastructure, and debt. They work with institutional clients to deliver innovative investment solutions.
Contact information:
pginvestments@partnersgroup.com
11. MSD Capital
MSD Capital is the private investment firm for Michael Dell and his family, managing a diversified portfolio across public equity, real estate, and private equity. The firm takes a long-term approach to wealth preservation and growth.
Contact information:
inquiries@dellfamilyoffice.com
12. Emerson Collective
Emerson Collective is an organization that leverages philanthropy, impact investing, and policy innovation to drive social change in areas like education, immigration reform, and climate action.
Contact information:
info@emersoncollective.com
13. Soros Family Office
The Soros Family Office manages global investments across diverse asset classes, including venture capital, private equity, and public markets.
Contact information:
14. Vintage Investment Partners
Vintage Investment Partners focuses on venture funds and startups, with expertise in primary investments and secondaries.
Contact information:
15. Korea Venture Investment Corp (KVIC)
KVIC oversees Korea's global VC funds, driving innovation through strategic venture capital investments.
Contact information:
16. Argonautic Ventures
Argonautic Ventures is a VC and hedge fund targeting emerging industries and transformative technologies.
Contact information:
17. Mousse Partners
Mousse Partners manages a proprietary global investment portfolio, emphasizing private equity and venture capital opportunities.
Contact information:
18. Top Tier Capital Partners
Top Tier Capital Partners specializes in venture fund-of-funds, co-investments, and secondaries, supporting innovative startups globally.
Contact information:
19. Next Play Capital
Next Play Capital provides access to top-tier venture funds and direct co-investments, connecting investors with high-growth opportunities.
Contact information:
20. Greenspring
Greenspring focuses on fund, direct, and secondary VC investments, partnering with entrepreneurs and VC firms to drive growth.
Contact information:
21. Sapphire Ventures
Sapphire Ventures partners with visionary teams and venture funds, helping businesses scale through strategic support and capital.
Contact information:
info@sapphireventure.com
22. Willoughby Capital
Willoughby Capital focuses on growth investments in private and public markets, backing scalable companies in various sectors.
Contact information:
23. Pritzker Vlock Family Office
The Pritzker Vlock Family Office invests in biotech, consumer tech, and real estate, with a mission to support disruptive innovations.
Contact information:
24. Seven Valleys
Seven Valleys is a family office managing investments across diverse asset classes, supporting growth through a disciplined approach.
Contact information:
contact@sevenvalleys.com
Emerging Trends Among LPs Investing in Venture Capital Funds
There are 4 main trends we've observed amongst LPs:
Increasing Focus on ESG
LPs are demanding that VC funds prioritize sustainability, diversity, and ethical investments.
Rise of Family Offices
Family offices are becoming more prominent as LPs due to their ability to take long-term risks.
Secondary Markets Growth
Why LPs are exploring secondary investments in established VC funds.
Regional Diversification
A look at how LPs are funding VC firms in emerging markets like Southeast Asia and Africa.
Why LPs Are Vital to the Success of Venture Capital Funds
LPs play a critical role in not only funding but also shaping the strategic direction of venture capital (VC) firms. At their core, LPs provide the financial backbone that enables VC funds to deploy capital into startups, fueling innovation and growth in various industries.
Without LPs, venture capital firms would lack the resources to back transformative ideas, making LP contributions vital to the success of the broader startup ecosystem.
Beyond providing capital, many LPs bring industry expertise that helps guide the strategies of the VC firms they invest in. Corporate venture arms, sovereign wealth funds, and other institutional LPs often share valuable insights about emerging trends, key sectors, and market dynamics.
This expertise helps VC firms refine their investment strategies and gain a competitive edge. For instance, LPs with deep knowledge of biotech or fintech can influence VC firms to focus on these high-growth areas, ensuring their portfolios remain ahead of the curve.
LPs also play a significant role in expanding a VC firm’s network and deal-making capabilities. Their connections can open doors to larger deals, co-investment opportunities, and access to markets that might otherwise be out of reach.
In some cases, influential LPs have helped VC firms scale by facilitating introductions to potential co-investors or portfolio companies. For example, a sovereign wealth fund backing a VC firm may provide access to international markets, enabling the firm to identify and fund startups with global potential. Through their funding, expertise, and networks, LPs are not only enablers but also strategic partners in the growth and success of venture capital firms.
How EverythingStartups Helps Venture Capital Firms Raise Capital
We understand that raising capital is one of the biggest challenges for venture capital firms. To secure top-tier limited partners, a compelling brand and strategic content are essential. EverythingStartups specializes in helping VC firms position themselves as industry leaders, ensuring they stand out to institutional investors, family offices, and high-net-worth individuals.
Why Do LPs Choose Certain VC Firms?
LPs evaluate VC firms based on track record, investment thesis, and credibility. But in a crowded market, strong positioning and visibility are what make the difference. Without clear, engaging content that demonstrates expertise, even the best funds struggle to attract capital.
EverythingStartups is built for venture capital firms that want to attract the right LPs and raise more capital. Let’s craft a content strategy that makes your firm impossible to ignore.
We create high-quality, strategic content that builds trust with LPs and showcases a firm’s investment strategy, portfolio success, and industry insights.
Our approach includes:
⚫ Thought Leadership Content – Position your firm as a leader through compelling LinkedIn posts, blog articles, and investor newsletters.
⚫ Clear, Persuasive Messaging – Communicate your unique investment thesis and track record in a way that resonates with LPs.
⚫ LP-Focused Case Studies – Highlight portfolio wins and showcase your firm’s value with data-driven case studies.
⚫ SEO-Optimized Content – Ensure potential LPs find you through Google searches with optimized website content and blog articles.
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