MOIC (Multiple on Invested Capital)

Definition

Total value returned divided by the original investment amount. The metric VCs use to measure how many times they multiplied their money.

Example Usage

Our Series A investment achieved a 12x MOIC when we sold the company, far exceeding the typical 2-3x return expectation.

Origin

Financial performance measurement terminology

Fun Fact

A 1x MOIC means you broke even; institutional investors typically target 5x+ MOIC to justify the risk

Source: Venture capital performance metrics

Related Terms

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The attempt to prove you weren't just lucky with Series A and that your unit economics actually work at scale.

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control premium

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pay-back period

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