Where do venture capitalists get their money?

Most venture capital firms raise their "funds' from institutional investors, such as pension funds, insurance companies, endowments, foundations, family offices, and high net worth individuals. The investors who invest in venture capital funds are referred to as "limited partners." Venture capitalists, who manage the fund, are referred to as "general partners." The general partners have a fiduciary responsibility to their limited partners.
 
Limited partners are able tolerate the ‘higher risk’ associated with venture capital funds as they typically invest only a very small percentage of their assets in the pursuit of higher than normal returns.   As many of the institutions manage large pools of capital, even a small percentage allocated to the venture capital markets, creates a relatively significant impact.

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