General Partner Contribution

General Partner Contribution refers to the amount of capital that the fund manager contributes to its own fund in the same way that a limited partner does. This ensures that the interests of limited partners are aligned with those of the general partner. Limited partners, on the other hand, can contribute capital and share in the company liability, although they cannot make managerial decisions. In most venture capital funds, it is a common practice to contribute at least 1% of the fund capital, despite the legal requirement already being scrapped by US Department of Treasury.

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