Total Value to Paid-In-Capital (TVPI) or Multiple of Invested Capital (MOIC) tell us of how much money you’re getting back from your initial investment. RVPI is of use to venture capital firms and investors investing into VC funds.You can also use this ratio to evaluate your own investments. The formula for calculating TVPI is by dividing total value by paid-in-capital (Total Value/ Paid-In-Capital). To get Total Value, you add fair value to total cash realized; while the Paid-In-Capital is the total invested amount. TVPI gives us the estimated return per dollar invested. For example, a TVPI multiple of three (3) means if all investments close an investor gets three (3) shillings back for every shilling invested. A higher TVPI is higher is better but just as we saw with DPI and RVPI, this metric does not include time and therefore does not provide the full picture.
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