What is RVPI?
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. RVPI is the “paper” complement to DPI (realised cash) within TVPI.
The formula
RVPI = Residual NAV ÷ Paid-In Capital. NAV here is the GP’s mark-to-market valuation of remaining portfolio holdings — based on most recent funding round, comparable transactions, or DCF model. Unlike public equities, no daily price discovery exists; NAV is updated quarterly at best.
Why RVPI is mark-sensitive
RVPI rises with NAV markups and falls with markdowns. During 2021-2022, many venture funds saw RVPI inflate as tech valuations peaked, then collapse as the public markets re-rated. ILPA reporting standards require GPs to apply consistent valuation methodology, but discretion remains significant — especially for late-stage holdings without active comparables.
RVPI in fund lifecycle
Early in a fund’s life (years 1-4), RVPI dominates TVPI — most value is unrealised. Mid-fund (years 5-7), DPI starts catching up as initial exits occur. Late-fund (years 8-12), RVPI shrinks as remaining holdings are exited or written off. A GP entering year 10 with high RVPI faces pressure to exit or transfer holdings to a continuation vehicle.
Why founders should care
A GP whose RVPI depends heavily on your company creates a particular dynamic: aggressive markup pressure (to support fund reporting) plus exit-window urgency in late-fund years. Understanding your investor’s RVPI position helps you read their incentives around new financing rounds, secondaries, and exit timing.
Related: TVPI, DPI, Fund Returns, IRR, Power Law.