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
- Multiple on invested capitalThe search label “Multiple on invested capital” can route to both entries.
Sources & evidence · 6
Direct term-level sources and supporting source families.
- National Venture Capital Association — Model Legal DocumentsDirect source · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
- IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- Y Combinator — Safe financing documentsSupporting source family · practitioner · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16