Metrics & Performance
Distributed to Paid-In
Last updated
Quick Answer
The ratio of cash and securities actually distributed to LPs relative to their total contributed capital, measuring realized (not paper) returns.
Distributed to Paid-In (DPI) measures the cumulative distributions a fund has made to limited partners as a multiple of their total capital contributions. Unlike TVPI which includes unrealized gains, DPI counts only actual cash (or in-kind securities) that LPs have received. A DPI of 1.0x means LPs have received back exactly what they invested—they are 'whole.' A DPI above 1.0x means the fund has returned more than was invested; below 1.0x means LPs have not yet recovered their capital. DPI is considered the most reliable and conservative performance metric because it measures 'cash-on-cash' returns that cannot be revised or disputed, unlike NAV-based metrics that depend on GP valuations. In the early years of a fund's life, DPI is typically very low (0.0-0.2x) due to the J-curve effect, then climbs as exits occur. By the end of a fund's life, DPI should approach or equal TVPI as all remaining positions are realized. Experienced LPs give significant weight to DPI, especially for evaluating mature funds where most returns should already be distributed.
In Practice
An LP reviews a 2015 vintage fund: TVPI is 2.8x but DPI is only 0.6x—meaning 79% of the claimed value is unrealized. A 2012 vintage fund shows TVPI of 2.5x and DPI of 2.3x—meaning 92% of value has been distributed in cash. The LP places far more confidence in the 2012 fund's performance because the returns are realized, while the 2015 fund's returns are largely based on the GP's valuation of unrealized holdings.
Why It Matters
DPI is the ultimate reality check on fund performance. Paper gains can be inflated by optimistic valuations, but cash distributions are undeniable. LPs should be wary of GPs who tout high TVPI with low DPI, especially in funds old enough to have generated exits. As the saying goes in venture: 'You can't eat IRR'—only distributed cash matters.
Further Reading
Venture Capital KPIs: 20 Metrics Every GP Should Track
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DPI: What Distributions to Paid-In Means in Venture Capital
DPI (Distributions to Paid-In) is the only VC fund metric that measures real, returned cash. Here's what it means, how it's calculated, why LPs prioritize it over TVPI, and what strong DPI looks like.
IRR: What Internal Rate of Return Means in Venture Capital
IRR (Internal Rate of Return) is how venture capitalists measure the time-adjusted performance of their investments. Here's what it means, how it's calculated, why timing matters, and what good IRR looks like for a VC fund.
VC Term Sheet Template & Guide: Every Clause Explained with Examples
A clause-by-clause breakdown of every standard VC term sheet provision — what each term means, what's market, what to negotiate, and the red flags that cost founders millions.
TVPI: What Total Value to Paid-In Means in Venture Capital
TVPI (Total Value to Paid-In) is the primary fund performance metric used by LPs and VCs to measure total return — both realized and unrealized — relative to capital invested. Here's what it means, how it's calculated, and what benchmarks matter.
Venture Capital Salary & Compensation Guide 2026: Every Level Explained
A detailed breakdown of 2026 venture capital compensation across every role—from analyst to managing partner—including salary bands, bonus structures, carry mechanics, fund size effects, geography adjustments, and negotiation tactics.
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Frequently Asked Questions
What is Distributed to Paid-In in venture capital?
Distributed to Paid-In (DPI) measures the cumulative distributions a fund has made to limited partners as a multiple of their total capital contributions. Unlike TVPI which includes unrealized gains, DPI counts only actual cash (or in-kind securities) that LPs have received. A DPI of 1.
Why is Distributed to Paid-In important for startups?
Understanding Distributed to Paid-In is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
What category does Distributed to Paid-In fall under in VC?
Distributed to Paid-In falls under the metrics category in venture capital. This area covers concepts related to the quantitative measures used to evaluate fund and company performance.
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