# What is Distributed to Paid-In Capital? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Metrics  
> **Canonical Citation:** [https://spidits.com/startup-glossary/dpi](https://spidits.com/startup-glossary/dpi)

## Definition
Distributed to Paid-In Capital (DPI) measures the actual cash returns distributed to a fund's investors (LPs) relative to the total capital they have paid into the fund.

## Architectural Mechanics & Deep Dive
Distributed to Paid-In Capital (DPI) measures the actual cash returns distributed to a fund's investors (LPs) relative to the total capital they have paid into the fund.

## Industry Applications & Real-World Use Cases
VC realized performance tracking

## Frequently Asked Questions

### Why is DPI preferred over TVPI?
DPI measures real cash distributions ("cash on cash"), while TVPI includes speculative, non-liquid paper valuations.

### What does a DPI of 1.0x mean?
It means the fund has returned exactly the amount of capital invested to LPs; any further distribution is profit.

## Related Terminology
- [tvpi](https://spidits.com/startup-glossary/tvpi)
- [moic](https://spidits.com/startup-glossary/moic)
- [exit](https://spidits.com/startup-glossary/exit)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*