---
title: "What Is Mark-Up?"
term: "Mark-Up"
description: "Mark-up is increasing the reported carrying value of a portfolio investment when fair value has risen—often after an up round, strong operating results, or higher public comps."
date: 2026-07-25T00:00:00.000Z
updated: 2026-07-25T00:00:00.000Z
topics: ["venture-capital"]
source: https://venturecapitaltracker.com/glossary/mark-up
---

# What Is Mark-Up?

> Mark-up is increasing the reported carrying value of a portfolio investment when fair value has risen—often after an up round, strong operating results, or higher public comps.

**Mark-up** is an upward adjustment to the fair value at which a fund records a portfolio company on its books.

### How it works

Funds [mark-to-market](/glossary/mark-to-market) on a regular cadence. Mark-ups occur when fair value exceeds prior carrying value:

- New financing at higher valuation
- Beating plan with credible path to near-term raise
- Public peer multiples expanding the implied range
- Acquisition offers or secondary trades at higher prices

Example: after a Series C at double the prior post-money, the lead fund marks its Series A stake up to reflect dilution-adjusted value gain—paper profit on the LP report, not cash in pocket.

Mark-ups can partially reverse via [mark-downs](/glossary/mark-down) if conditions worsen. LPs distinguish unrealized mark-ups from **DPI**—cash actually distributed.

### Why it matters

- **Founders:** Positive marks help your investors raise their next fund and support follow-on checks internally. They also raise expectations for the next round's pricing.
- **Investors:** Interim TVPI includes mark-ups; diligence asks how much is marks vs realized returns.

### Common mistake

Treating mark-ups as permanent validation. Without revenue and retention backing, marks ahead of the next priced round can invite sharp markdowns later.

### Related ideas

See also [mark-down](/glossary/mark-down), [mark-to-market](/glossary/mark-to-market), [TVPI](/glossary/tvpi), and [up round](/glossary/up-round).

## FAQ

### What is mark-up in simple terms?

The investor raises the book value of your company because new evidence says it is worth more—usually a higher-priced financing round or sustained outperformance against plan.

### Why does mark-up matter?

Mark-ups boost interim fund metrics and LP confidence but are unrealized. GPs still need exits to return cash; founders should not confuse friendly marks with liquidity.


---
Source: https://venturecapitaltracker.com/glossary/mark-up