IRR and MOIC

Return amount and return timing are separate questions. A money multiple summarizes how much value an investment produces relative to its cost. An internal rate of return uses a dated cash-flow pattern to express an annualized rate. Neither label turns an estimated company valuation into cash received, and neither can be established without specifying whose investment and proceeds are being measured.

The collection makes the timing point by comparing $1m becoming $1.5m over six months with the same amounts over thirty years. Both have a 1.5-times gross money multiple in that simple two-payment illustration. Their timing differs radically. This arithmetic is an introductory interpretation of the example, not a reported achieved return or a complete IRR calculation. Watch source

Coverage is limited. The source discusses fund hurdles, delayed exits and monetization, but provides no auditable gross or net IRR/MOIC record reconciled to dated contributions, distributions, fees, ownership changes and remaining value. A headline portfolio valuation, revenue target or ownership percentage cannot fill those gaps. Before evaluating performance, define realized versus unrealized value, gross versus net economics and the measurement date. For now, use the collection to recognize why duration and actual shareholder cash matter. Do not infer an investment track record from fundraising ambitions or simplified exit illustrations. Watch source Watch source

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Returns and exits · Equity value · Investor equity.

Continue in the course: Returns and exits.