NAV

Net Asset Value (NAV) is the total estimated value of a VC fund's remaining portfolio minus any liabilities. NAV represents the current mark-to-market value of all unrealized investments. As companies exit (via IPO, acquisition, or write-off), they are removed from NAV. NAV + cumulative distributions = TVPI (when divided by paid-in capital). NAV is reported to LPs quarterly and drives their own mark-to-market portfolio valuations. Secondary buyers of LP interests use NAV as the starting point for pricing LP stakes (secondary transactions often happen at a discount or premium to NAV depending on portfolio quality and market conditions).