Wed, 15 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
There are three key metrics for tracking the performance of a Fund.
The first is Net Internal Rate of Return (called Net IRR) -- this measures the performance of fund distributions and the change in value of the invested companies over time, after management fees.
The second is Total Value to Paid in Capital (called TVPI) --this measures the total value of a fund’s holdings plus distributions, as compared to total paid in capital. This takes into account investments that have increased in value but have not been paid out.
Finally, there is Distributions to Paid in Capital (called DPI) -- this measures total distributions paid to investors compared to total paid in capital. This compares the investors paid in capital to their distributions as measured on a cash-on-cash basis.
DPI is the metric investors care about the most.
Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_Key_Metrics_for_a_Fund.mp3
Category: -- posted at: 3:02pm CDT