Backswing Ventures Announces Fund II Surpasses 1.0x DPI in Under Three Years
WINDERMERE, Fla., June 2, 2026 /PRNewswire/ -- Backswing Ventures today announced that Fund II, a 2023 vintage fund, has surpassed 1.0x Distributed to Paid-In Capital (DPI), returning more capital to investors than originally contributed in slightly over three years from inception.
This milestone places Fund II in a differentiated position relative to the broader venture capital market. According to industry benchmarking data from Carta as of Q4 2025, 2023 vintage venture funds have generally produced limited realized liquidity to date, with the vast majority remaining well below 1.0x DPI, as illustrated in the chart below.
As of Q4 2025, Carta data indicates that the 90th percentile DPI for 2023 vintage funds was approximately 0.06x, underscoring the scarcity of realized distributions across the venture ecosystem. Against this backdrop, Backswing's Fund II exceeding 1.0x DPI reflects a materially differentiated capital return profile. It is important to highlight that this DPI comes from only two substantial exits. Backswing has eight companies remaining in Fund II, all of which are currently performing well.
In addition to surpassing 1.0x DPI, Fund II currently maintains a strong MOIC, reflecting both realized liquidity and continued upside across the remaining portfolio.
A Deliberate Focus on Liquidity and Capital Efficiency
At Backswing Ventures, capital return is a core pillar of investment strategy.
While many venture firms remain structurally dependent on traditional liquidity pathways such as acquisitions or public offerings, Backswing has built an investment strategy designed to generate earlier liquidity through disciplined portfolio management and active participation in secondary markets.
"Returning capital is not an afterthought for us—it is central to how we underwrite investments and manage portfolio positions," said Kyle Asman, Managing Partner at Backswing Ventures. "Our objective is to compound investor capital efficiently while minimizing unnecessary duration risk."
Backswing seeks to return invested capital to limited partners as quickly as commercially reasonable, reducing downside exposure and allowing LPs to recycle capital into new opportunities.
The firm evaluates liquidity opportunities with discipline and consistency, pursuing partial or full exits when it believes risk-adjusted return potential has been substantially realized or when a new owner is better positioned to support the company's next phase of growth and scale.
This approach has enabled Backswing to realize gains and return capital independent of broader IPO market reopening timelines or M&A activity cycles.
A Different Model for Venture Capital in Defense and Dual-Use Markets
Backswing Ventures invests in early-stage dual-use and defense technology companies.
The firm's investment model combines traditional venture underwriting with a strong emphasis on capital discipline, downside protection, and liquidity generation—an increasingly important differentiator in today's venture environment.
"At a time when much of venture remains heavily marked but lightly realized, we believe actual distributions matter more than ever," said Asman. "DPI is ultimately what LPs can spend, redeploy, and measure."
About Backswing Ventures
Backswing Ventures is an early-stage venture capital firm focused on dual-use and defense technology companies. The firm invests in businesses building next-generation capabilities across aerospace, autonomy, defense systems, infrastructure, cybersecurity, and national security technologies.
For more information, visit www.backswingventures.com.
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SOURCE Backswing Ventures
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