GP Commitment
The portion of a venture fund's capital contributed by the general partners themselves, alongside LP money.
The GP commitment is the amount of the fund's total capital that the general partners personally invest, typically 1-5% of total fund size, funded from their own capital rather than fees earned managing the fund. It aligns GP incentives with LPs, since the GP's own money is at risk alongside investor capital, not just their fee income.
LPs generally view a meaningful GP commitment as a positive signal of conviction, and its absence (or a token, minimal commitment) is often scrutinized during fund due diligence, especially for first-time managers raising their debut fund.
A GP raises a $75M fund and commits 2% of it — $1.5M — from personal capital, funded over the same capital-call schedule as LPs.
As an LP evaluating a new or emerging manager, ask specifically how the GP commitment is being funded — a commitment financed entirely by a loan against future management fees is a much weaker alignment signal than genuine personal capital at risk.
What's a typical GP commitment size?
Commonly 1-5% of total fund size, though it varies by manager experience and fund strategy, with LPs generally favoring commitments at the higher end as a stronger alignment signal.
Related terms
Run the numbers yourself: dilution, SAFE conversion, and fund-returner calculators.