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The early roots of VC can be traced back to pioneer times when high risk ventures required the backing of a financial sponsor with considerable risk appetite. These sponsors would typically be industrial families with amassed wealth, looking to now diversify investments with a project that they believe in. An early example can be found with whaling ships in the mid 19th century.
The whaling industry shares much in practice with modern-day VC funds. A VC fund typically takes the form of a partnership where investors, also called General Partners (GPs), invest capital provided by a wide variety of individuals and institutions with a high-risk tolerance who seek strong returns – these investors are called Limited Partners (LPs).
https://lucid-finance.com/2021/07/26/venture-capital-whaling-in-the-digital-age/
