Metrics & Performance
DPI
Distributions to Paid-In Capital — the ratio of cash actually returned to LPs divided by the capital they invested. The only VC performance metric based on realized, distributed cash.
DPI (Distributions to Paid-In Capital) measures the ratio of actual cash and stock distributions returned to limited partners relative to the capital they invested. It is the most important performance metric for mature VC funds because it reflects realized returns rather than paper markups.
A DPI of 1.0x means LPs have received back exactly what they put in. A DPI of 2.0x means they've received twice their investment. A DPI of 0x means nothing has been distributed — all value is still on paper (unrealized).
DPI is the counterpart to RVPI (Residual Value to Paid-In Capital), which measures unrealized portfolio value. Together, DPI + RVPI = TVPI.
In Practice
A $100M fund has called $80M of committed capital. It has distributed $120M to LPs through exits and IPO liquidations. DPI = $120M / $80M = 1.5x. The fund still holds positions valued at $60M on paper. RVPI = $60M / $80M = 0.75x. TVPI = DPI + RVPI = 1.5x + 0.75x = 2.25x. The 1.5x DPI is the figure LPs trust most — it's cash in hand.
Why It Matters
DPI is the most credible signal of a fund manager's ability to generate real returns. Early in a fund's life, DPI is low (investments haven't exited yet). As the fund matures, LPs expect DPI to grow. A fund with high TVPI but low DPI has promising paper gains but hasn't proven it can actually exit positions. Top-quartile funds often have DPI of 2x+ by the end of their 10-year life.
VC Beast Take
DPI is the metric that separates legitimate top-tier firms from funds that are good at marking up their books. A fund manager who has returned 3x DPI across multiple funds has real proof of value creation. One with strong IRR and TVPI but low DPI across all vintage years is essentially showing you unrealized, unproven gains. When evaluating managers, ask: 'What is your realized DPI on your last three funds?'