#203 VC Fund Model: DPI Forecast Template

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VC Fund Model: DPI Forecast Template

As we update our VC fund models at year-end, a lot of investors are thinking about DPI (Distributions to Paid-In Capital). However, many LPs, VCs, and CFOs/ Finance Pros fail to appreciate the detail and nuance behind DPI until they actually go through it.

Today, we share more on what DPI really looks (from a real example) including the mechanics for fees & expenses, called capital, carried interest, recycling, and other key components.

We will share screens shots to illustrate and have the model link below for our premium subscribers (thank you for your support!).

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Understanding DPI & What It Means for Investors

Understanding DPI is essential venture capital funds. DPI measures how much capital has been returned to investors relative to the amount they contributed. Accurate modeling of DPI helps fund managers set realistic expectations and build stronger relationships with their LPs.

DPI remains one of the most discussed metrics in VC because it represents actual, realized value—not just projections or valuations. As we’ve highlighted in previous posts, many LPs prioritize DPI when assessing a fund’s performance, particularly in the current climate (where VC is under scrutiny for illiquidity).

Related to DPI, here are a few links to prior posts we’ve written on fund modeling and specifically DPI:

• Venture Capital DPI: When Does It Really Matter?

• #189 VC Monitor Report Deep Dive (Q3'24) & Exit Predictions (DPI)

• #181 My VC "Rule of 50", Ownership, Fund Model Impacts

• #175 VC DPI in Yr 5 - What Does It Mean?

• #93 VC DPI & Power Laws - What They Mean Today

• #2 VC Fund Model (Back to Basics)

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DPI Forecast Template - Let’s Dig In

Below, we share our DPI forecast template - let’s dig in:

Now that we’ve sold part of our position and generated proceeds, what comes next?

The end (for now). We’ve sent dollars back to our investors (DPI) while also generating dollars for recycling and fund carry. Exciting!

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Link to DPI Model (Premium Subscribers)

For those who are premium subscribers, here’s a link to the fund model illustrated above: