Venture capital's biggest problem isn't returns — it's liquidity. Funds raised in 2020-2022 show healthy TVPI multiples of 1.3-1.8x, but DPI tells the real story: 2021 vintage funds have returned just 0.08x to LPs. That means for every $100M an LP committed, they've received $8M back after 5 years. The IPO drought of 2022-2024 froze exit activity, stretching average hold periods from 4.5 years to over 7 years. Capital calls have exceeded distributions every year since 2022, creating a cash flow crisis for endowments, pensions, and fund-of-funds that need to meet their own obligations. The SpaceX IPO ($75B) cracked the dam, but $300B+ in unreturned capital remains trapped. This dashboard tracks DPI by vintage year, the TVPI-DPI gap, hold period trends, and the pipeline of potential exits that could finally unlock LP liquidity.
DPI (Distributions to Paid-In) measures actual cash returned to LPs. A 0.08x DPI means LPs have received $8 for every $100 invested. Unlike TVPI which includes paper gains, DPI is the most honest measure of fund performance — you can't spend unrealized returns.
The IPO window was effectively closed from 2022-2024. Only 28 IPOs in 2023 vs 397 in 2021. M&A slowed due to antitrust scrutiny. Average hold periods stretched to 7.2 years. Capital calls have exceeded distributions every year since 2022, creating a cash flow crisis.
3 mega-IPOs in the pipeline: Anthropic ($965B), Databricks, and Stripe. SpaceX already returned $75B. If the full pipeline executes, 2026-27 could see $500B+ in distributions — potentially the largest LP payout cycle in venture history.
TVPI includes unrealized paper gains; DPI counts only cash. A 2021 fund might show 1.5x TVPI but 0.08x DPI — meaning 95% of returns exist only on paper. LPs increasingly demand DPI over TVPI when evaluating re-ups.