DPI

Definition

Distributed to Paid-In Capital—the ratio showing how much cash a VC fund has returned to investors relative to what was invested, the only metric VCs care about more than founders' happiness.

Example Usage

Our VC firm has a 2x DPI across their portfolio, which means they've returned twice the invested capital through distributions.

Origin

Venture capital performance metrics terminology

Fun Fact

Top-tier VCs target 3-5x DPI; most achieve 1-2x, which is still considered acceptable in the inefficient world of venture capital

Source: Venture capital performance and return metrics terminology

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