MOIC (multiple on invested capital)

MOIC (multiple on invested capital) is proceeds received divided by capital invested. A 3.0× MOIC means an investor got back three dollars for every dollar they put in; a 0.6× MOIC means they got back sixty cents on the dollar — a loss. Unlike IRR, MOIC ignores how long the money was invested, which makes it simple but incomplete: a 3× over eighteen months and a 3× over eight years are very different outcomes by any other measure, even though their MOIC is identical.

Where it comes from in a waterfall

At an exit, MOIC is computed per security: a preferred series' proceeds (from its liquidation preference, its participation if any, or its as-converted common value — whichever path it actually took) divided by what it invested. Common stock and options don't have a MOIC in the same sense unless you track a cost basis for them (typically the strike price paid, for options).

Why the same exit produces different MOICs per security

Because preferred stock's payout depends on its own preference terms, seniority, and whether it converts, two series that invested the same amount at the same time can post very different MOICs from the identical exit — a senior 1x non-participating series and a junior 2x participating series will diverge sharply at a mediocre exit, and converge (or even flip) at a very large one.

Reading it honestly

A high MOIC on a single deal says little on its own — it needs to be read against the invested amount (a 10× on a $50,000 check moves a fund far less than a 3× on a $5,000,000 check) and against the fund's overall portfolio. Foundily's exit waterfall calculator reports MOIC per security alongside raw proceeds specifically so it isn't read in isolation.