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Dictionary by pitch.dog
Exits, liquidity & investor returns · Core

Return multiple

Also called: multiple on invested capital

ELI5

How many times the original investment came back.

Used in conversation

“The deal generated a three-times return multiple.”

Definition

Total value or proceeds divided by invested capital.

Here “Return multiple” means: Total value or proceeds divided by invested capital.

Pitch context

You will see “Return multiple” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches exits, liquidity & investor returns.

Why it matters: In exits, liquidity & investor returns, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

When the words have to travel

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Sources & evidence · 6

Direct term-level sources and supporting source families.