Strategy & Portfolio
Ownership Target
The percentage of a company that a VC fund aims to own after making an investment, typically used to determine check size.
An ownership target is the minimum equity stake a venture fund seeks when making an investment. Most lead investors target 15-25% ownership at entry, while seed funds may target 7-15%. The ownership target drives check size calculations: if a fund targets 20% ownership in a company valued at $50M post-money, the check size must be $10M. Ownership targets are critical for portfolio math and fund economics.
In Practice
The fund's 20% ownership target at Series A meant they needed to invest $12M in the $60M post-money round. When the valuation increased to $80M, they had to decide whether to write a $16M check or accept lower ownership.
Why It Matters
Ownership targets determine whether a fund can generate sufficient returns. A fund that consistently under-owns its winners won't produce top-quartile returns, regardless of how good their picks are.
VC Beast Take
Ownership is the venture capital game. If you can't get enough of it in your best companies, nothing else matters.
Related Concepts
Further Reading
How to Build an Angel Investing Portfolio
The math behind angel portfolio construction — why you need 20+ investments, how to size checks, allocate across sectors, spread vintage years, and maintain follow-on reserves.
Startup Equity Compensation Explained: Stock Options, RSUs, and More
ISOs, NSOs, RSUs, restricted stock — startup equity comes in many flavors. Here's what each type actually means for your compensation, your taxes, and your financial future.
What a Series A Process Actually Looks Like
The Series A is where fundraising gets real — partner meetings, deep diligence, and term sheet negotiations. Here's a realistic week-by-week breakdown of what to expect.
Lead Investor vs Follow-On Investor: What Founders Need to Know
Your lead investor sets the terms, anchors the round, and signals to the market. Getting this wrong can stall your fundraise for months. Here's how lead and follow-on dynamics actually work.
How Startup Valuations Are Actually Calculated
How VCs actually calculate startup valuations at every stage — from pre-seed to Series B+. The six primary methods, real examples, and the negotiation dynamics that determine the final number.
Series A Funding: What It Is and How to Raise It
Series A is where startups prove they can scale. Here's what investors expect, what metrics matter, and how to run a successful Series A process.
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