Metrics & Performance
MOIC
Multiple on Invested Capital — the total return on an investment expressed as a multiple of the original capital deployed. A 3x MOIC means you received $3 for every $1 invested.
MOIC (Multiple on Invested Capital) is a simple ratio that expresses total return as a multiple of the original investment. If you invest $1M and receive $4M back (including your original $1M), your MOIC is 4x.
Unlike IRR, MOIC is time-agnostic — it doesn't matter whether the return came in 3 years or 10 years. This makes it easy to communicate but incomplete as a standalone metric. MOIC is often referred to as the 'money multiple' or 'cash-on-cash return.'
At the fund level, MOIC is used to express how much of the fund's invested capital has been returned or is valued at. At the deal level, it shows the gross return on a single investment. Target gross MOICs for VC funds are typically 3-5x, with net MOIC (after fees and carry) being lower.
In Practice
A VC fund invests $500K in a startup at Seed. The company is acquired for $150M. The fund's ownership at exit is 8% (after dilution), giving them $12M in proceeds. The MOIC on this investment is $12M / $500K = 24x. At the fund level, if the fund invested $30M total and has returned or is marked at $90M, the fund MOIC is 3x.
Why It Matters
MOIC is the clearest way to communicate raw return magnitude. For founders evaluating potential VC partners, a fund's MOIC track record signals whether they have the portfolio density and ownership discipline to generate real returns. For LPs, MOIC alongside IRR and DPI gives a complete picture: how much did they make, how fast, and how much is real vs. paper?
VC Beast Take
The VC industry often conflates gross MOIC (before fees and carry) with net MOIC (what LPs actually receive). A 3x gross MOIC at a 2/20 fund translates to roughly 2.3x net after fees and carry — still good, but not 3x. Always clarify whether the MOIC cited is gross or net when evaluating fund performance claims.