What is DPI in venture capital?

DPI (distributions to paid-in) measures cash actually returned to LPs divided by capital paid in. A DPI of 1.0 means LPs have their money back; everything above is realized profit.

DPI starts at zero and climbs only with exits, which in venture take a decade or more. In liquidity droughts the gap between healthy TVPIs and low DPIs across the industry becomes the story.