Metrics & Performance
Total Value to Paid-In
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.
Further Reading
Understanding Liquidation Preferences: What Employees Need to Know
Liquidation preferences determine who gets paid first when a startup exits. In some scenarios, investors take everything and employees get nothing — even in a 'successful' acquisition. Here's how it works.
Exercise or Wait? A Guide to Startup Stock Option Decisions
Should you exercise your stock options now or wait? The answer depends on taxes, risk tolerance, and your company's trajectory. Here's a framework for making the right call.
Understanding Your Startup's Fundraising: What It Means for Employees
When your startup raises a new round, your equity changes in ways that aren't always obvious. Here's what dilution actually means, why higher valuations can be misleading, and what new investor rights mean for you.
Angel Investing Returns: What the Data Actually Shows
A data-driven look at angel investing performance — Kauffman Foundation research, AngelList data, power law dynamics, and the harsh portfolio math most angels never confront.
How to Read Your Startup's Cap Table as an Employee
Your startup's cap table holds the answers to what your equity is really worth. Here's how to read it, understand your ownership percentage, and see where you stand in the stack.
Startup Equity Compensation Explained: Stock Options, RSUs, and More
ISOs, NSOs, RSUs, restricted stock — startup equity comes in many flavors. Here's what each type actually means for your compensation, your taxes, and your financial future.
Related Guides
Understanding Startup Equity and Dilution: A Complete Guide
How equity actually works, what dilution really means, and what founders take home in different exit scenarios. Real math, worked examples, no hand-waving.
The Complete Guide to Startup Fundraising
A step-by-step guide to raising capital for your startup — from deciding when to raise, to closing your round and everything between. Written for founders, by people who've seen both sides.
How Venture Capital Works: The Complete Guide
Everything you need to understand about venture capital — how funds raise money, how deals get done, and how returns flow back to investors. The definitive primer.
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