with Marc Penkala, General Partner at āltitude
EUVC Academy · 1h 29m · Fund Modelling, Fundraising, Fund Operations, Legal & Structuring
Part of Fund Modelling Series
Venture capital fund metrics are the core language used to evaluate performance, compare funds and guide decision-making across the fund lifecycle. They matter because metrics without context, benchmarking and proper interpretation are meaningless to LPs and can misrepresent true performance.
This session focuses on how GP metrics, fund metrics and asset metrics connect across the full stack. Watch to learn how to interpret these metrics over time, how they link from asset to fund to benchmark level and how LPs actually assess relative performance.
Key Learning Points
Fundamentals and reporting principles
Strong reporting anticipates LP questions and presents misses with the same clarity as wins, signalling judgement over perfection
Metrics gain meaning only through comparison, as LPs underwrite relative not absolute performance
Benchmarking across asset, fund and market levels is essential, as standalone metrics lack context
The “metrics onion” moves from deal to company to fund to peers to market, requiring reporting beyond standard disclosures
GP metrics and decision quality
Deal flow quality and conversion indicate the strength and focus of sourcing and selection
Deal pace is assessed against expectations, as over- or under-investing affects exposure and timing
Drawdowns reflect operational discipline and how capital is deployed over time
Mark-ups and deal loss ratio indicate portfolio quality and outcomes in competitive processes
Fund metrics and performance interpretation
TVPI captures total value, including realised and unrealised returns, with net vs gross reflecting LP-level outcomes
DPI represents realised returns and becomes more relevant after the investment period
RVPI reflects remaining unrealised value within the fund
IRR measures the timing of returns, is volatile early and becomes more meaningful later in the fund lifecycle
Advanced fund metrics and capital dynamics
MOIC measures investment performance excluding fees, providing a view on gross returns
MEE captures LP exposure by accounting for the timing of capital calls
FFR indicates early portfolio quality through follow-on funding activity
DFR shows how much capital is deployed into investments relative to fund size and fees
Asset metrics and portfolio reality
Pre- and post-money valuations reflect entry pricing and investment conditions
Portfolio dilution affects ownership across rounds and incentive structures
Capital efficiency metrics such as burn multiple and revenue per FTE reflect how efficiently capital is used
Graduation rates and revenue vs profitability reflect portfolio progression over time
