Metrics & Performance
Book Value
Last updated
Quick Answer
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.
Related Concepts
Frequently Asked Questions
What is Book Value in venture capital?
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).
Why is Book Value important for startups?
Understanding Book Value is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
What category does Book Value fall under in VC?
Book Value falls under the metrics category in venture capital. This area covers concepts related to the quantitative measures used to evaluate fund and company performance.
Newsletter
The VC Beast Brief
Join thousands of founders and investors. Every Tuesday.
The VC Beast Brief
Master VC terminology
Get smarter about venture capital every week. Our newsletter breaks down the terms, concepts, and strategies that matter.
VentureKit
Ready to launch your fund?