VC Terms You Actually Need To Know
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VC jargon makes fundraising feel like learning a new language, but this a16z carousel actually breaks it down in plain English. Let’s turn those pretty slides into a cheat sheet so you can walk into any investor meeting and not sound like a rookie.
Why this visual is so useful
The first slide shows the whole money flow in one glance: capital moves from LPs into a VC fund, is controlled by GPs, and lands in portfolio companies. When you understand who sits where in that stack, you instantly know who you’re really pitching, who writes the checks, and who is just providing the fuel behind the scenes.
The core VC terms you actually need
- Venture Capital Firm: The business that raises money from investors and deploys it into startups, aiming for outsized returns.
- Limited Partners (LPs): Outside investors like pension funds and endowments that supply the cash but do not manage the fund.
- VC Fund: The pooled pot of money raised from LPs that’s earmarked for investing in startups over a set time period.
- General Partners (GPs): The people running the fund day-to-day, picking companies, sitting on boards, and negotiating deals.
- Portfolio Companies: The startups (Company A, B, C on the slide) the fund actually invests in.
Real-world angle on these terms
Andreessen Horowitz operates as a venture capital firm that raises multiple VC funds from large limited partners and then deploys those funds into a portfolio of high‑growth tech companies.
Creative Variations
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