DPI (Distributed to Paid-In)
DPI (Distributed to Paid-In) measures the cash actually returned to LPs divided by the capital LPs have paid in. A DPI of 2.0× means the fund has distributed twice the paid-in capital — the cheque has cleared.
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DPI (Distributed to Paid-In) measures the cash actually returned to LPs divided by the capital LPs have paid in. A DPI of 2.0× means the fund has distributed twice the paid-in capital — the cheque has cleared.
RVPI (Residual Value to Paid-In) measures the unrealised portion of a venture fund’s value — the residual NAV of unsold portfolio holdings divided by paid-in capital. A 1.5× RVPI means the fund’s remaining portfolio is currently valued at 1.5× of paid-in capital.
TVPI (Total Value to Paid-In) measures a venture fund’s total value — distributions already paid to LPs plus the residual NAV of unrealised holdings — divided by capital LPs have paid in.
MOIC (Multiple on Invested Capital) is the simplest venture return metric: total value generated (distributions + remaining NAV) ÷ invested capital. A MOIC of 3× means the fund or deal returned three times the capital put in.
Internal Rate of Return (IRR) is the time-weighted return metric used to measure venture fund performance. Mathematically, IRR is the discount rate that makes the net present value of all cash flows (capital calls and distributions) equal to zero.
Fund returns are the financial performance metrics that limited partners (LPs) use to evaluate a venture fund’s success — both during the fund’s life and after the final exit.
Power law is the mathematical distribution that describes venture fund returns: a small number of outlier investments produce the vast majority of fund returns.
A spin-off separates a subsidiary into a new, independent company by distributing its shares to existing shareholders pro rata, with no cash changing hands. It differs from an equity carve-out (minority IPO for cash) and a split-off (share exchange), and can be structured tax-free under IRC 355 in the US or the demerger (bolunme) regime in Turkiye.
Open Source Software (OSS) license obligations are the conditions imposed by individual open source licenses on the use, modification, and redistribution of the licensed software.
Source code escrow is a tri-party arrangement where a software vendor deposits source code with an independent escrow agent (e.g., Iron Mountain, NCC Group, Codekeeper), with release conditions that protect the customer (licensee) if the vendor becomes unable to support the software.