VC Fund Economics
Fund Return Model
Model DPI, TVPI, RVPI, and GP carry across your fund's full lifecycle.
Fund Structure
Portfolio Performance
Fund Results
TVPI
2.80×
$140.0M gross value · 10.8% net IRR
$84.0M
$56.0M
$10.0M in fees
8% preferred return = $57.9M
20% of profits above hurdle
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How to Use This Tool
Enter your fund size, number of investments, and model different exit outcomes for your portfolio companies. The calculator shows your fund's TVPI, DPI, and IRR based on the portfolio outcomes you define.
Key Fund Metrics
TVPI = (Distributions + Remaining Value) ÷ Paid-In Capital | DPI = Distributions ÷ Paid-In Capital
TVPI (Total Value to Paid-In) measures total fund performance including unrealized gains. DPI (Distributions to Paid-In) measures actual cash returned. LPs care about DPI because paper returns don't pay bills.
Why This Matters
Fund return modeling is the foundation of fund management. Before you raise a fund, you need to model whether your strategy can generate returns that justify the risk for LPs. A top-quartile VC fund returns 3x+ net to LPs. If your portfolio construction can't plausibly achieve that, your strategy needs work.
Industry Benchmarks
Top Quartile VC
3x+ TVPI
What LPs consider strong performance
Median VC Fund
1.5–2x TVPI
Most funds barely outperform public markets
Target IRR
20–25%+
Net IRR LPs expect from venture
What to Do With Your Results
- 1Model the power law — what happens if only 1 of 20 investments returns 50x? Does the fund still work?
- 2Stress-test your assumptions — what if your best company only returns 10x instead of 50x?
- 3Compare fund sizes — would the same strategy work better in a smaller or larger fund?
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