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    Investor ROI Calculator

    Estimate the return multiple and IRR on a startup investment — accounting for future dilution before exit.

    The Deal

    Model an angel or seed check through to exit.

    Ownership lost to later rounds & option pools before exit.

    How to calculate return on a startup investment

    Your initial ownership is your check divided by the post-money valuation. But that stake shrinks with every future round — so apply expected dilution before valuing it at exit:

    Exit Ownership = (Investment ÷ Post-Money) × (1 − Dilution%)
    Return Multiple = (Exit Valuation × Exit Ownership) ÷ Investment
    IRR = Multiple^(1 ÷ Years) − 1

    Angel and seed investors typically underwrite to a 10x+ potential on winners, because most of a portfolio returns little or nothing — the power law does the work. A 5–7 year hold at a 10x multiple is roughly a 40–58% IRR. Dilution of 30–50% between seed and exit is normal; ignoring it overstates returns significantly.

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