What is MOIC?
MOIC (Multiple on Invested Capital) is the simplest venture return metric: total value generated (distributions + remaining NAV) ÷ invested capital. A MOIC of 3× means the fund or deal returned three times the capital put in. MOIC ignores time and ignores leverage — it answers only “how big is the multiple?”
MOIC vs. TVPI vs. IRR
MOIC and TVPI (Total Value to Paid-In) are sometimes used interchangeably, but technically:
- MOIC measures the multiple on invested capital (excludes uncalled commitments).
- TVPI measures the multiple on paid-in capital (includes recycling, fees, expenses).
- IRR measures the time-weighted return — sensitive to when distributions occur.
Two funds can have identical MOICs but very different IRRs because of timing. Two funds can have identical IRRs but very different MOICs because of fund size dynamics.
What top-quartile MOIC looks like
Cambridge Associates and PitchBook benchmarks suggest top-quartile US venture funds (vintages 2010-2018) delivered net MOIC of 2.5× to 4×. Top-decile funds reached 5×+ net MOIC. The Turkish CMB-licensed venture fund (GSYF) universe is smaller and less benchmarked publicly, but TRY-denominated MOIC targets are often higher in nominal terms to compensate for FX depreciation.
Why founders should know their investor’s MOIC target
An early-stage GP targeting a 3× fund MOIC needs at least one portfolio company returning 30-50× — that’s the power-law math. This shapes deal selection (only invests where the upside scenario is “fund-returner”) and ongoing portfolio behaviour (the GP will push aggressive growth even at high burn). Founders raising from a “venture-style” GP should expect this; founders raising from a “growth equity” investor (target 2× MOIC, 20% IRR) face different incentives.
The “fund-returner” test
A common venture diligence question: “if this deal works, can it return the entire fund?” For a USD 200M fund seeking 3× MOIC, the deal needs USD 600M in attributed value at exit. Working backwards from typical ownership stakes (10-25% at Series A), the founder needs to build a USD 3-6B outcome. This is the math behind why VCs say no to companies they think will only be “good businesses.”
Related: Fund Returns, IRR, Power Law, Carry, Unicorn.