The Math Behind Starting a Successful Software Startup
Tomasz Tunguz
AUGUST 1, 2022
How much value does a successful software startup create per dollar of venture investment? About 10x, though it’s volatile. Let’s call the value generated per venture dollar the MOIC (multiple on invested capital). MOIC = value_at_exit / total_VC_dollars_raised. Over the last 30 years, a venture dollar invested in a successful US software startup generated $10 of value.
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