VC Math Fund Calculator
Understand venture capital investment logic through comprehensive fund-level math. Model B2B vs B2C scenarios, unit economics, and see why VCs need 10x+ returns.
Business Model Scenario
B2B SaaS
Enterprise software with recurring revenue
VC Fund Economics
Companies that drive majority of fund returns
Unit Economics Health Check
Should be 3:1 or higher
< 12 months (B2B)
Growth efficiency metric
The VC Math Reality Check
The Problem
17 companies will fail
8 will return some capital
Only 2 will drive fund returns
70.0% failure rate is industry standard
The Math
Each winner must return:
$150M
That's 50.0x on investment
To achieve 3.0x fund return
Your Target
Required exit valuation:
$100B
With 15.0% VC ownership
Based on Series A scenarios
Key Insight: Why VCs Say No
For this fund to succeed, your company needs to reach a $100B valuation. If VCs don't see a clear path to this scale in your market size, business model, or unit economics, they'll pass regardless of current traction. This is why they focus on TAM, scalability, and winner-take-all dynamics.
5-Year Targets to Hit VC Returns
Reality Check: To make this VC fund work...
Your B2B SaaS needs to reach $10B revenue by Year 5 (exit at $100B = 10x revenue multiple)
Customers Needed
200,000
By Year 5
Growth Rate Required
900%
Annual CAGR
Monthly CAC Budget
$180M
Year 5 acquisition spend
Market Share
100.0%
Of $10B TAM
Year-by-Year Milestones
| Year | Revenue Target | Total Customers | New Customers | Monthly CAC Spend | Market Share |
|---|---|---|---|---|---|
| Year 1 | $1M | 20 | 20 | $20K | 0.0% |
| Year 2 | $10M | 200 | 180 | $180K | 0.1% |
| Year 3 | $100M | 2,000 | 1,800 | $1.8M | 1.0% |
| Year 4 | $1B | 20,000 | 18,000 | $18M | 10.0% |
| Year 5 | $10B | 200,000 | 180,000 | $180M | 100.0% |
The Bottom Line:
Your B2B SaaS needs to acquire 40,000 customers per year at $50K ACV, growing 900% annually to hit VC return requirements. Warning: Requires >10% market share - extremely difficult to achieve.
Dilution Journey: Founder to Exit
| Round | Year | Pre-Money | Investment | Post-Money | New Investor % | Founder % |
|---|---|---|---|---|---|---|
| Start | 0 | - | - | - | - | 100.0% |
| Seed | 1 | $5M | $1M | $6M | 16.7% | 83.3% |
| Series A | 2 | $20M | $5M | $25M | 20.0% | 66.7% |
| Series B | 3.5 | $80M | $15M | $95M | 15.8% | 56.1% |
| Exit | 5 | - | - | $300M | - | 56.1% |
Dilution Reality Check:
Founders typically own 10-25% at exit after multiple rounds. The key is ensuring the pie grows much larger than the percentage you give up. Would you rather own 100% of a $1M company or 15% of a $500M company?
B2B vs B2C: What It Takes to Hit VC Returns
B2B SaaS Requirements
Challenge: Must acquire enterprise customers at scale while maintaining high ACVs
B2C Mobile Requirements
Challenge: Must achieve massive user scale with monetization in huge competitive markets
The Reality Check:
Both models require extraordinary execution to hit VC return requirements. B2B needs enterprise sales excellence and retention mastery. B2C needs viral growth mechanics and monetization at massive scale. Most startups fail because they underestimate what "venture scale" actually means.
This calculator models simplified VC fund economics for educational purposes.
Actual venture capital mathematics involves many additional variables and should be discussed with financial professionals.
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