VC & PE Glossary
What Is Write-Up?
Updated
Definition
A write-up increases the carrying value of an investment on the books — reflecting higher fair value from up rounds, strong performance, or favorable public market comparables.
Useful for: Founders, Investors
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.
Related terms
- Paper Gain — A paper gain is an unrealized increase in the value of an investment on paper—marked up in a portfolio or cap table but not yet converted to cash through a sale, IPO, or secondary.
- Write-Down — A write-down is reducing the carrying value of an asset on the books — marking a portfolio company or loan below prior reported value when performance or market conditions deteriorate.
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Common questions
Short answers for founders, LPs, and operators