Metrics & Performance
Last updated
Quick Answer
A fund performance metric that measures total value (distributions plus remaining NAV) relative to total capital contributed by LPs.
Total Value to Paid-In (TVPI) is a fund performance metric that measures the ratio of a fund's total value — both realized distributions and unrealized net asset value — to the total capital contributed by LPs. A TVPI of 2.0x means the fund has generated or is expected to generate twice the invested capital. TVPI is a more comprehensive measure than DPI (which only counts distributions) because it includes unrealized value in the portfolio.
In Practice
The Fund II showed a TVPI of 3.2x: LPs had contributed $80M and received $120M in distributions (DPI of 1.5x), with the remaining portfolio valued at $136M. The total value of $256M divided by $80M paid-in capital yielded the 3.2x TVPI.
Why It Matters
TVPI is the most commonly used measure of fund performance because it captures total return potential. However, it relies on unrealized portfolio valuations, which can be subjective. LPs should evaluate TVPI alongside DPI for a complete picture.
VC Beast Take
The gap between TVPI and DPI tells you how much of the fund's return is on paper versus in the bank. A fund with 3x TVPI but 0.5x DPI has generated impressive paper returns but hasn't returned much cash. Until you get cash back, it's all theoretical.
Venture Capital KPIs: 20 Metrics Every GP Should Track
Most GPs are flying blind. Here are the 20 VC KPIs that separate disciplined fund managers from everyone else — with benchmarks, formulas, and why each one matters.
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.
CAC: What Customer Acquisition Cost Means in Venture Capital
CAC (Customer Acquisition Cost) is the metric VCs use to assess go-to-market efficiency. Here's what it means, how to calculate it correctly, what good benchmarks look like, and how it interacts with LTV to determine business viability.
ARR: What Annual Recurring Revenue Means in Venture Capital
ARR (Annual Recurring Revenue) is the single most-watched metric in SaaS venture capital. Here's exactly what it means, how it's calculated, what benchmarks matter, and why VCs obsess over it.
LP Reporting Best Practices: Quarterly Reports That Build Trust
How to write LP quarterly reports that build trust and keep your investors informed. Templates, metrics to include, and the cadence top GPs follow.
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.
Total Value to Paid-In (TVPI) is a fund performance metric that measures the ratio of a fund's total value — both realized distributions and unrealized net asset value — to the total capital contributed by LPs. A TVPI of 2.
Understanding Total Value to Paid-In is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
Total Value 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.
Newsletter
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?