In this episode, we dive into the critical performance metrics used in venture capital. These metrics provide powerful insights for Limited Partners (LPs) and General Partners (GPs) navigating the complexities of VC fund performance. By analyzing key indicators like Total Value to Paid-in (TVPI), Distributions to Paid-in (DPI), and Internal Rate of Return (IRR), we uncover how these signals influence investor decisions and fund trajectories. From understanding unrealized value to pinpointing successful exits, we explore how these metrics directly impact portfolio health and returns.Through this breakdown, we explain how early-stage and follow-on funding ratios, deployment to fee ratios, and other essential metrics shape the strategic planning and financial outcomes of VC funds. You'll learn how the relationship between capital deployment, fees, and returns sets the stage for potential fortunes or funding flops, and how different investors leverage these indicators for long-term success.As we analyze investor behavior and capital commitments, we discuss how metrics like Maximum Expected Exposure (MEE) and Follow-on Funding Rate (FFR) reveal the true potential of funds. The episode also addresses the importance of understanding fee structures and the role of follow-on funding in driving the growth of portfolio companies. We’ll explore how dilution, exit strategies, and growth projections dictate investor payouts, all while emphasizing the importance of timing and capital efficiency in realizing high returns.Whether you’re a founder, an LP, or a GP, this episode gives you a comprehensive toolkit for mastering the VC game, highlighting both the risks and rewards that shape the venture capital landscape.Loved this episode? Leave us a review: https://open.spotify.com/show/2qmMHGEs1h8sswOG0fF24fNow Available across All Streaming Platforms: https://podcasters.spotify.com/pod/show/armorecapitalFor partnerships & collaborations, contact [email protected]

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