Metrics & Performance
Book Value
The carrying value of a portfolio investment on a fund's books — usually the last round valuation or a write-down if performance has deteriorated.
Book value (or carrying value) is the value at which a VC fund records a portfolio investment on its books. VC funds mark their investments to market using the most recent round price as the primary valuation anchor (fair value accounting per ASC 820). If a portfolio company raises a new round at a higher valuation, the fund marks up its holding. If performance deteriorates or a round is raised at a lower price, the fund takes a write-down. For unrealized investments with no recent transaction, GPs may use other fair value techniques (comparable company multiples, DCF). Book values are used to calculate TVPI and NAV — they represent paper gains until an actual exit crystalizes real returns.