Limited Partners (LPs) in venture capital (VC) must be proactive in monitoring fund performance to safeguard their investments. They should track key performance metrics such as Internal Rate of Return (IRR), Multiple on Invested Capital (MOIC), Distributions to Paid-In Capital (DPI), and Residual Value to Paid-In Capital (RVPI). Regular communication with fund managers is essential for understanding valuation methods and market conditions. LPs should also benchmark fund performance against peers and public markets, and assess individual portfolio company performance and exit strategies. Ongoing monitoring and engagement are crucial for optimizing returns and ensuring strong governance.