ownership target

Definition

The percentage of a company a VC aims to own to make an investment worthwhile relative to their fund size. It's why large funds often can't invest in your seed round—they need bigger slices.

Example Usage

They have a 15% ownership target, so they can't lead our $2M round without it looking weird.

Origin

Venture capital fund economics and return modeling

Fun Fact

Ownership targets create the 'series crunch' where early-stage funds can't follow on and growth funds won't lead, leaving startups orphaned between stages.

Source: Venture capital fund economics and strategy

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