Venture Capital Return Multiple (MoC) Calculator
Calculate the return on your venture capital investment. See your multiple, IRR, and how you compare to VC benchmarks.
Total capital invested initially
Follow-on investments during holding period
Total money received from exit (acquisition, IPO)
Years from initial investment to exit
Include partial exit sales before final exit
If yes, amount received from secondary sales
What is Multiple of Money (MoM)?
MoM (also called Return Multiple) measures how much you get back for every dollar invested. A 5x MoM means you receive $5 for every $1 invested. Formula: Total Proceeds / Total Capital Invested. Simple and intuitive - it's the most common way to express VC returns.
What is a good multiple for venture capital?
VC returns follow a power law: (1) Bottom quartile loses money, (2) Median returns 1-2x (losers), (3) Top quartile returns 3-5x, (4) Top 10% returns 10x+. Top VC funds need 3-5x net to cover losses and produce returns. Y Combinator targets 10x+ for winners.
What is IRR and why does it matter?
Internal Rate of Return accounts for WHEN you receive money, not just how much. Getting $10M in 2 years is better than in 10 years. IRR calculates the annual rate that makes the investment cash flows equal zero. Time-weighted - a 10x in 2 years beats a 20x in 10 years.
How do I calculate MoM with multiple investments?
Sum ALL capital invested (initial + follow-ons), then divide total proceeds by total invested. Example: $1M initial + $500K follow-on = $1.5M invested. Exit at $6M = 4x MoM ($6M / $1.5M). The timing of investments affects IRR but not MoM.
What is the difference between realized and unrealized returns?
Realized returns = cash received from exits, secondary sales. Unrealized returns = current value of holdings not yet sold. VC fund performance reports show "Net IRR" using both. Our calculator focuses on REALIZED returns - actual cash from completed exits.
Why do VCs need high multiples?
Venture returns follow power law: most investments fail or return 1x, a few return 5-10x,极少数 return 50x+. To produce fund returns, VCs need outliers. A fund of 20 investments: 10 losers (0x), 8 at 1-2x, 2 at 10x = ~2.5x net fund return. Without big winners, fund fails.
What is DPI and RVPI in VC metrics?
DPI (Distributions to Paid-In) = cash returned / capital invested. Realized returns. RVPI (Residual Value to Paid-In) = current value / capital invested. Unrealized. TVPI (Total Value to Paid-In) = DPI + RVPI = total value (realized + unrealized). LPs watch DPI closely as it's real money.
How do secondary sales affect returns?
Secondaries let investors sell before final exit. They provide partial liquidity and can "crystallize" returns. Our calculator includes secondary proceeds in total proceeds. A $1M investment with $300K secondary + $5M exit = $5.3M total proceeds, 5.3x MoM.