Key Person Clauses
LPs invest in specific humans, not a firm brand.
The Trigger
The LPA designates certain GPs as "Key Persons". If these individuals die, become incapacitated, or leave the firm, a "Key Person Event" is triggered.
The Suspension
When triggered, the investment period of the fund is automatically suspended. The remaining partners legally cannot make new investments. They can only make follow-on investments into existing portfolio companies. If a Key Person leaves your VC, the firm might become a zombie unable to write new checks.