VC terms you need to know

Performance Metrics

Total Value to Paid-In Capital (TVPI)

TVPI is a measure of both the realized and unrealized value of a fund as a proportion of the total paid-in, or contributed, capital. It is calculated by (total value) / (paid-in capital) where total value is (distributions + net asset value). A TVPI over 1.00x means an investment’s value ha

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Fund Structure

Traditional Fund

Traditional funds typically do a “big bang” fundraise and begin deploying capital after the First Close. Once the fund is officially closed, they’re unable to accept new LPs.

That said, it’s not uncommon for fund managers to leave their fund “open” for several months while deploying and raising additional capital.

Ro

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Fundraising

General Partner (GP) 

A GP is a manager of a venture fund. They make decisions on how to invest the capital that LPs provide. 

Limited Partner (LP)

An LP is an investor into a venture fund. LPs provide the capital that fund managers invest, and typically have few required obligations outside of providing capital to the fund.&

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