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VC Math

Fund Return Calculator

Understand what return your company needs to deliver for a VC fund — and why they care so much about multiples.

Deal Details

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Fund Return Analysis

Investor proceeds at exit

$20.0M

6.7× on invested capital

Return multiple (MOIC)6.7×
Approx. IRR (7-year hold)31.1%
% of fund returned40.0%

What exit returns the fund?

1× fund ($50.0M)$500.0M exit
3× fund ($150.0M)$1.50B exit

This is why VCs need outlier outcomes — most funds need each investment to have a path to returning the entire fund.

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How to Use This Tool

Enter the fund size, your ownership stake, and the exit valuation of a portfolio company. The calculator shows what the return looks like from both the investor and founder perspective — helping you understand how VCs think about your company.

Why This Matters

Understanding fund return math helps founders negotiate better. A VC investing from a $100,000,000 fund needs your company to return at least $100,000,000 to their fund for the investment to be meaningful. That means if they own 10% of your company, you need to exit at $1,000,000,000+ for their math to work. This is why VCs pass on good businesses that aren't venture-scale.

What to Do With Your Results

  1. 1Model your investor's perspective — does your target exit make their fund math work?
  2. 2Understand why VCs say no — if your realistic exit is $100,000,000, that might not move the needle for their fund.
  3. 3Consider fund size — a $20,000,000 micro-VC fund needs much smaller exits to generate good returns than a $500,000,000 fund.

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