Definition
The time required for an investment fund to return its original capital to LPs through exits and distributions. It's the VC equivalent of asking 'when do I get my money back?'
Example Usage
Our fund achieved a pay-back period of just four years, thanks to two early unicorn exits.
Origin
General finance term adapted to venture capital fund performance metrics.
Fun Fact
Top-quartile venture funds typically achieve full pay-back within 5-7 years, while mediocre funds may take 10+ years or never fully return capital.
Source: Cambridge Associates venture capital benchmark studies
Related Terms
Translate This Term
See “pay-back period” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
Try the Translator