RVPI stands for Residual Value to Paid-In Capital. It's a straightforward metric that divides the current unrealized value of your remaining portfolio companies by the total capital you've invested to date. Think of it as a snapshot of how much upside potential still exists in companies you haven't exited yet.
How It Works
The calculation is simple: take the remaining unrealized value of all your portfolio companies and divide by your total paid-in capital. If you've invested $1 million across five startups and those companies are currently valued at $2.5 million, your RVPI is 2.5x.
RVPI differs from TVPI (Total Value to Paid-In), which includes both realized returns from exits and unrealized value. While TVPI shows your complete picture, RVPI isolates the potential upside still sitting in active portfolio companies.
Why It Matters for Investors
RVPI tells you whether your portfolio is front-loaded with winners or whether growth is still ahead. A high RVPI (3x+) suggests significant unrealized gains—companies are appreciating but you haven't cashed out yet. A low RVPI (0.5x or less) means you've already realized most returns through exits.
For angel investors specifically, RVPI helps you assess portfolio momentum. Early-stage portfolios naturally show higher RVPI because most companies are still private and unliquidated. Mature portfolios with multiple exits show lower RVPI since capital has already been returned.
Understanding RVPI also helps you calibrate expectations. If your RVPI is 4x but your MOIC (Multiple on Invested Capital) is only 1.2x, you're heavily dependent on future exits to deliver returns. That's important context for portfolio risk.
Example
Say you're an active angel with $500,000 deployed across ten startups over five years. Three have exited, returning $1.2 million. Seven are still private, currently valued at $1.8 million. Your RVPI is 1.8M / 500K = 3.6x. This tells you the bulk of your potential upside is still unrealized—you need successful exits from these seven companies to turn those paper gains into cash.
Key Takeaways
- RVPI isolates unrealized value, showing you how much upside remains locked in portfolio companies
- High RVPI doesn't guarantee returns—it only reflects current valuations, which are often subjective for private companies
- Compare RVPI to MOIC to understand whether your returns are realized or still pending
- Early-stage portfolios naturally show higher RVPI; this is normal and expected