In this article, we give guidance on how all investment details are calculated on Standard Metrics. Each section contains written and video instructions.
Investment amount
Investment amount is the total capital an investor has invested in a portfolio company. Investment amount is calculated by adding together the investment amount from every financing round.
Investment amount = Σ(Investment amounts)
Fair value
Fair value is the value of a VCs shares in a portfolio company. Fair value is calculated by multiplying the latest price per share by the total number of shares owned.
Fair value = Latest price per share * Shares owned
Realized value
Realized value is the amount of capital that has been returned to a VC from the portfolio company investment. Realized value is calculated by summing together all cash that has been realized in transactions.
Realized value = Σ(Realized cash)
Multiple on invested capital (MOIC)
MOIC is the measure of how many times an investment has grown in value. MOIC is calculated by dividing the current value of the investment by the original amount invested.
MOIC = (Realizations + Fair Value) / Investment Amount
First investment date
First investment date is simply the date of your first financing round.
Ownership
Ownership is a percentage that measures how much of the total portfolio company the investor owns. Ownership is calculated by dividing shares owned by fully diluted shares outstanding (FDSO).
Ownership % = (Shares owned / FDSO) * 100
Latest post-money valuation
Latest post-money valuation is the value of the portfolio company at its latest financing round. It is calculated by multiplying FDSO by latest price per share.
Latest post-money valuation = FDSO * Latest price per share
Gross IRR
Gross IRR is the rate of return that sets the Net Present Value (NPV) of all cash flows from the investment to zero. Unlike Net IRR, Gross IRR does not account for management fees or costs and therefore will be larger.
