Metrics & Performance
Write-Up
An increase in the carrying value of a portfolio investment on a fund's books, typically triggered when the company raises a new financing round at a higher valuation.
When a portfolio company raises a new round at a higher valuation, the VC marks up its investment — increasing the fund's TVPI on paper. Write-ups are unrealized gains: no cash has been received, and the investment hasn't been sold.
Write-ups improve fund metrics on paper and help GPs raise subsequent funds based on strong interim performance. The 2022-2023 correction forced write-downs across many portfolios that had been aggressively marked up during 2020-2021.
In Practice
A fund invests $2M for 10% of a company at a $20M valuation. The company raises Series A at $80M. The fund writes up its position to $8M carrying value (10% of $80M) vs. $2M invested = 4x paper return. No cash has changed hands.
Why It Matters
Sophisticated LPs always weight write-ups appropriately — real performance is DPI. A portfolio full of write-ups with no realizations is promises, not returns.
VC Beast Take
Write-ups aren't returns. The 2020-2021 era proved this when firms showing 5x paper returns used those numbers to raise new vehicles — then saw marks collapse to near cost basis two years later. Sophisticated LPs weight write-ups appropriately and focus on DPI.