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Power Law Calculator: How Many Winners Does a VC Fund Need?

Stress-test your portfolio construction. Enter fund size, number of companies, ownership at exit and a typical big-win exit value to see how many winners you need, then test an outcome mix to see the net multiple it produces.

QUICK ANSWERGross proceeds needed = target net multiple × fund size ÷ (1 − fee and carry drag). Big wins needed = gross proceeds ÷ (ownership at exit × big-win exit value). If one big win returns less than 1x the fund, the fund is too large for its ownership and exit assumptions.

Gross needed = Target × Fund ÷ (1 − drag)
Wins needed = Gross needed ÷ (Ownership at exit × Exit value)

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What the Power Law Portfolio Calculator does

✅ Winners needed for a target multiple
✅ Fund-returner test per exit
✅ Outcome mix to net multiple
✅ Value contribution by outcome bucket
✅ Average cheque size

How to use the Power Law Portfolio Calculator

STEP 1
Enter your numbers
Type the figures you know. Every field starts with a realistic example so you can see how it works.
STEP 2
Read the result instantly
Results, tables and the plain-English explanation update as you type. No submit button, no login.
STEP 3
Test scenarios
Change one assumption at a time (valuation, growth, dilution, exit) to see what really moves the outcome.
STEP 4
Share or save
Copy the summary, send it on WhatsApp or print to PDF for your co-founders, board or investment committee.

The power law in venture capital

Venture returns are dominated by a few outliers: in many funds the best company returns more than all the others combined. Portfolio construction therefore asks one question: if we hit one great company, does it return the fund?

Ownership matters as much as picking: a big exit at 1% ownership may not move a large fund, while the same exit at 8% can return it several times over.

Frequently asked questions

What is a fund returner?

A single investment whose proceeds equal or exceed the entire fund size.

How many companies should a seed fund invest in?

Commonly 25–40 to give enough shots at an outlier, while keeping enough ownership and reserves for follow-ons.

Why does fund size matter?

Larger funds need bigger exits or higher ownership to return the same multiple, which changes the stage and size of deals that make sense.

Is this tool free? Do I need to sign up?

Yes. It is completely free, needs no login and has no usage limit. FastFee builds payment collection software; these startup and investor tools are free resources for founders, angels and fund managers.

Is my data private?

Yes. Everything you type stays in your own browser on this device (local storage). Nothing is uploaded to FastFee. Export or print a copy if you need to keep it.

Use it together with

VC Fund Return Simulator →Model fund economics: investable capital, gross proceeds, carry, net TVPI and IRR.Portfolio IRR Calculator (XIRR) →Combined XIRR across all your startup investments with per-company MOIC and IRR.

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