Metrics & Performance
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Quick Answer
Total Value to Paid-In — the sum of distributions plus remaining portfolio value, divided by capital contributed. Includes both realized and unrealized returns.
Total Value to Paid-In Capital
TVPI = (Distributions + Residual Value) / Paid-In Capital
Where
TVPI (Total Value to Paid-In) is a comprehensive fund performance metric that captures both realized returns (cash distributed to LPs) and unrealized value (estimated value of remaining portfolio). Formula: TVPI = (Cumulative Distributions + Residual Value) / Paid-In Capital. TVPI = DPI + RVPI. A fund with TVPI of 2.5x has generated $2.50 of total value for every $1 invested, though some of that value may still be on paper. TVPI is the most commonly cited headline metric during a fund's active life, but savvy LPs always look at the DPI/RVPI breakdown to understand how much is realized vs. unrealized.
What good looks like
Why It Matters
TVPI gives the most complete picture of fund performance at any point in time. For young funds (years 1-5), it's the primary performance indicator since few exits have occurred. For mature funds, the gap between TVPI and DPI reveals how much value is still locked up in unrealized holdings. A narrowing TVPI-DPI gap over time is a positive signal — it means the GP is converting paper gains into real exits.
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What is DPI in venture capital?
DPI (Distributions to Paid-In Capital) measures how much cash a VC fund has actually returned to LPs relative to how much was invested. A DPI above 1x means LPs have gotten their money back.
What is IRR in venture capital?
IRR (Internal Rate of Return) is the annualized return on a VC investment, accounting for the timing of cash flows. Top-quartile VC funds target net IRRs above 20-25%.
What is TVPI and MOIC in venture capital?
TVPI (Total Value to Paid-In Capital) is the total value of a fund including unrealized gains. MOIC (Multiple on Invested Capital) is the gross investment multiple on a deal or fund.
This concept is especially relevant for these venture capital roles:
TVPI (Total Value to Paid-In) is a comprehensive fund performance metric that captures both realized returns (cash distributed to LPs) and unrealized value (estimated value of remaining portfolio). Formula: TVPI = (Cumulative Distributions + Residual Value) / Paid-In Capital. TVPI = DPI + RVPI.
Understanding TVPI is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
TVPI 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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