MOIC (Multiple on Invested Capital)

MOIC expresses value created as a simple multiple of the money invested, with no regard to time — a $1M check now worth $8M is an 8x. It is used at the deal level (gross, before fees) where TVPI is the fund-level, net-of-fees cousin. Because venture fees and carry consume a big share of gross returns, a fund needs roughly 3x gross MOIC to deliver the 2.5x+ net that top-quartile LPs expect.