Deal funnel
The progression from screened opportunities through evaluation to completed transactions. Conversion rates describe that process but do not alone establish efficiency or investment quality.
Deal funnel in round numbers
Hypothetical: of one cohort of 800 opportunities screened in a stated year, five close within the same observation period. The observed conversion rate is 5 ÷ 800 = 0.625%, rounded to 0.6%. Define the cohort and observation window before comparing rates.
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| Measure | Value |
|---|---|
| Screened opportunities | 800 |
| Closed from that cohort in the period | 5 |
| Observed conversion | 5 ÷ 800 = 0.625% ≈ 0.6% |
Shayne Fitz-Coy’s definition of Deal funnel
Most of these businesses were frogs. Most of the businesses you’ll see are frogs.
Terms Related to Deal funnel
Due diligence · Proprietary vs auctioned deal flow · IOI & non-binding offer · Kill issue · All of the glossary