DPI

“It is not in the interest of the founder for you, the lead seed VC, to sell your position at this time, but It is in your interest because you need to provide DPI to your investors. Very common right now. Core misalignment between founder and VC.”

“With regards to track record, in the past, TVPI or paper markups, they were enough. Now, there is a much greater focus on DPI, which is returned capital to investors.”

“I think if you've got the right LPs, they've seen enough in this business to understand that generating DPI through pressure isn't the best long-term outcome for the, for them and for the GPs. And then existing LPs have more data to evaluate progress and under…”

“Showing DPI is going to become more and more important. Mostly because LPs will struggle to evaluate what true TVPI is”

“I think around liquidity is probably the biggest whereby, especially I think in the next years it'll be really prominent, which is whereby you have a venture funds with not a lot of DPI. And they know that they need DPI more than ever to raise their next funds…”

“The last fund was the easiest to raise. So that was the fifth fund. ... Yeah. Yeah. It was a DPI story.”

“I would bet the last few years will be one of the biggest disconnects between TVPI and DPI for venture funds in venture history.”

“The only other time that would be equivalent would be about 99 and 2000, and I don't know if there is the volume of funds in the market then, so, and absolute numbers, he's probably right.”

“I think the numbers will tell you if you ask different LPs, if you can get three or four funds in a row with strong DPI, that is world class.”

“The chasm between TVPI and DPI will be the biggest in venture history.”

“On balance, I don't think reserves and follow ons, I think it actually hurts seed investing and it hurts seed investing in two ways. One is it depresses DPI.”

“I think that DPI could be dead.”

“Fund, our Fund Three is a 20 18 vintage. No DPI yet.”

“I believe I believe that, like, DPI is the most important thing, and marks are completely for suckers.”

“For the first three funds, you know, there's no DPI. And then you return a shitload of DPI, and then LPs go, mm, but are they really hungry anymore? Cause they've made a lot of money.”

“Because of that, I think there is, I would say too much focus even, but understandably on DPI, and where, you know, people hardly talked about it three years ago, and now some LPs, oh, it's just DPI. It's just DPI. We don't believe anything.”

“Marks are opinions. DPI is math.”

“I speak to a lot of LPs now, and do you know what, honestly, we can say what we want. They've gone back to wanting TVPI. They've gone back to wanting big numbers. And yes, they want DPI, of course, they always want DPI. But they are still very impressed by TVP…”

“I just think we don't think about the velocity of cash enough, and what I mean by that is like, you know, yes, there might be another double, but if I have to wait five years, and then the IPO, and then an 18 month lockup, Jesus, give me 50% of that now, and I…”

“And we're working for DPI, and the bigger we make the fund, the tougher it is on the DPI.”