A write-up raises the book value of a holding — marking the investment above its prior carrying amount when fair value increases.

How it works

Common write-up triggers:

• Priced up-round — new third-party financing sets higher reference valuation
• Secondary transaction — arm’s-length sale at higher price
• Public comparables — late-stage marks rise with public peer multiples
• Operating outperformance — revenue and retention beat plan materially

Funds apply valuation policies — last round, hybrid, option pricing — to avoid arbitrary marks. Auditors review large write-ups in fund financials.

Example: seed stake marked at cost $2M; Series B at 3x price implies write-up to $6M on fund books — a paper gain until exit or secondary.

Write-ups can reverse via write-downs if conditions worsen — marks are not permanent profit.

Why it matters

• Founders: Strong write-ups help with recruiting and follow-on fundraising narratives — cite third-party rounds when possible.
• Investors: TVPI includes unrealized write-ups; LPs distinguish from DPI. Aggressive write-up policies inflate fundraising track records until exits prove marks.

Common mistake

Equating write-ups with fund success. DPI and cash distributions matter; paper write-ups evaporate in down markets.

Related ideas

See also write-down, paper gain, and fair value policy.