Venture Capital Method: Exit Ownership Bridge
Work backward from exit value and target return to today’s ownership.
- Assumed exit equity value
- $100M
- Check size today
- $2M
- Required return multiple
- 10×
- Ownership at exit
- 20%
- Retention after future rounds
- 70%
- Ownership needed today
- ~28.6%
Year ~5 terminal case
Primary capital invested
Target proceeds = $20M
$20M ÷ $100M
Illustrative dilution path
20% ÷ 0.70
Simplified bridge for teaching. Real deals layer liquidation preferences, option pools, and scenario exits. Pair with pre/post-money math before negotiating.