VCs typically get their money that they invest entrepreneurs in four ways.

1. Diverse LPs: The most common funding source comes from a diverse group of limited partners (e.g., university endowments, high net worth individuals, insurance companies and pension funds).
2. Family Office:  The second most common source of capital is from one limited partner, typically an extraordinarily wealthy family or corporation.
3. Government:  Some VCs are part of a state or local government investing money with the objective of generating returns and enhancing the local economy.
4. Public Markets:  VCs also raise capital by becoming publicly traded companies. Shares are purchased on the open market, giving the VC fund capital to invest.