Investor ROI Calculator
Whether you are the investor or pitching one, this is the maths behind the cheque. Enter the investment, the stake and the exit you expect, and see the ROI, the multiple on invested capital, and the annualised return that investors really care about.
Multiple, return and annualised rate
Proceeds are the exit value times your stake after dilution. Compare that to what you put in for the multiple and ROI, then annualise it for IRR.
What each input actually means
What return should investors target?
Return expectations fall as risk falls, so the required multiple depends heavily on stage.
Seed: aim for 10x or more
The earliest and riskiest cheques. Investors need the winners to return ten times or more to cover the losers.
Series A: 5x to 10x
Still high risk but with more proof. Funds look for several times their money on the companies that work.
Later stage: 2x to 4x
Lower risk, lower multiple. The company is more proven, so a smaller multiple can still be an excellent return.
IRR above 25%
A common venture benchmark. Top funds target annualised returns of 25 percent or more across the portfolio.
Investor ROI FAQ
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