Economics

FAQ

<some fund> –> LP –> VC –> PVT LTD.
LP : Only job of an LP is to manage money. LLP is limited in that they don’t manage money.
- One would open an LP in an intention to borrow money from a source and return that back to the source while making some profit.
<some fund> can be bank, some reach family, pvt ltd. So why would any rich org become a source of fund?
- Because it wants to make a “societal” change and it possibly can’t do it on its own
- So it’ll outsource the money to an LP who promises to fund VC working with startups/pvt ltd. working in those areas.