Metrics & Performance
DPI
Distributions to Paid-In Capital — the ratio of cash returned to LPs versus capital invested. DPI above 1x means LPs have gotten their money back.
DPI (Distributions to Paid-In Capital) is the realized return metric for VC funds. Unlike TVPI (which includes unrealized paper gains), DPI represents only cash that has actually been returned to limited partners. DPI = Total distributions / Total paid-in capital. A DPI of 1.0x means investors received exactly their money back; 2.0x means they doubled their money in cash. Early in a fund's life (years 1-5), DPI is near zero because most portfolio companies haven't exited. As the fund matures, DPI rises with each exit. Institutional LPs care deeply about DPI — endowments, pension funds, and fund-of-funds need to show their own boards actual cash returns, not paper marks.