What is Total Value to Paid-In Capital?
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.
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
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