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What is Total Value to Paid-In Capital?

Definition

Total Value to Paid-In Capital

Total Value to Paid-In Capital (TVPI) is a performance metric for venture capital funds that measures the total value (realized returns + paper value) relative to the amount of capital paid in by investors.

Why It Matters for Startups

Directly dictates the cap table and dilution structure during fundraising; understanding Total Value to Paid-In Capital helps founders model equity distributions when structuring rounds for vc fund performance and valuation auditing.

Detailed Deep Dive

Total Value to Paid-In Capital (TVPI) is a performance metric for venture capital funds that measures the total value (realized returns + paper value) relative to the amount of capital paid in by investors.

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Frequently Asked Questions

Q:How is TVPI calculated?

TVPI = (Cumulative Distributions + Remaining Value) / Cumulative Paid-In Capital.

Q:What is a good TVPI ratio?

A TVPI of 3.0x or higher over a fund's 10-year lifetime is generally considered strong.

Quick Facts

  • CategoryMetrics
  • Key ApplicationVC fund performance and valuation auditing

Coverage Trend12 Weeks

12w agoToday

Cite This Term

Reference this definition in your articles, research, or documentation to credit this source:

[Total Value to Paid-In Capital | SPIDITS Glossary](https://spidits.com/startup-glossary/tvpi)

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