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Startup Return Calculator

Model your return at exit across scenarios — accounting for dilution from future rounds.

Investment Details

$
%
%

Exit ownership after dilution

6.40% (from 10% entry)

Return Scenarios

Write-off$0
Total loss—
1× return$320,000
0.6× MOIC · -6% IRR$5.0M exit
3× return$960,000
1.9× MOIC · 10% IRR$15.0M exit
10× return$3.2M
6.4× MOIC · 30% IRR$50.0M exit
30× return$9.6M
19.2× MOIC · 53% IRR$150.0M exit
100× return$32.0M
64.0× MOIC · 81% IRR$500.0M exit

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How to Use This Tool

Enter your investment amount, the company's valuation at entry, and the expected exit valuation. The calculator shows your return multiple and IRR based on the holding period.

Why This Matters

Every VC investment is ultimately evaluated on its return multiple. A 10x return on a $500,000 check generates $5,000,000 — meaningful for a $20,000,000 fund but barely noticeable for a $500,000,000 fund. Understanding return math helps you make better investment decisions and set appropriate expectations.

What to Do With Your Results

  1. 1Model the fund-level impact — does this single return meaningfully move your fund's TVPI?
  2. 2Account for dilution — your ownership will decrease in future rounds unless you exercise pro-rata.
  3. 3Consider holding period — a 5x in 3 years is far better than a 5x in 10 years (IRR matters).

Related Tools

→Fund Return Model→Dilution Impact Calculator→Venture Power Law Simulator

Learn More

→How Venture Capital Returns Actually Work→Angel Investing Returns: What the Data Actually Shows

Frequently Asked Questions

What percentage of startup investments actually succeed?

Roughly 65-75% of venture-backed startups fail to return their invested capital. About 20-25% return 1-3x, and only 5-10% generate the outsized returns (10x+) that drive fund performance. At the seed stage, failure rates are even higher — approximately 80-90% of seed investments fail to return capital. This is why portfolio diversification and the power law are central to VC strategy.

What is a good return multiple for a startup investment?

For individual investments, a 3x return is considered decent, 5-10x is strong, and 10x+ is a home run. For fund-level returns, top-quartile VC funds target 3x net TVPI (total value to paid-in capital) and 25%+ net IRR. However, context matters — a 3x in 3 years (41% IRR) is far superior to a 3x in 10 years (12% IRR). Time-adjusted returns via IRR give a more complete picture than multiples alone.

How does dilution affect startup investment returns?

Dilution is the silent return killer in venture investing. If you own 10% of a startup at seed, you might own 5-6% by the time it exits after Series A, B, and C rounds — a 40-50% reduction. A company that exits at $500M would return $50M on your 10% stake, but only $25-30M on your diluted 5-6% stake. Exercising pro-rata rights in follow-on rounds is how investors maintain ownership and protect their return potential.

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Related Tools

Valuation Sensitivity ToolInvestor
See how entry valuation affects returns across exits.
Dilution Impact CalculatorInvestor
Model how future rounds dilute your ownership.
Venture Power Law SimulatorInvestor
Model how outlier returns drive portfolio performance.
Fund Return CalculatorFounder
Understand what return your company needs to deliver for a VC fund.

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