In configuring a sales process, a set of key metrics is used to determine pipeline health at every stage. Using these metrics, companies are able to identify areas in which the process might be falling short. The below table provides an overview of key metrics that founders can track to measure pipeline health:
Key MetricWhat It MeasuresImplicationsCalculationPeriod
Pipeline Fluidity ScoreMeasures the forward momentum within the pipelineA low score indicates low activity and highlights the need for faster movementNumber of deals that changed stagesWeekly
Access Success Rate (ASR)Measures the success rate in getting access to targeted investorsA low score indicates the need for a reliable way to land warm intros and first calls% of deals in the “Seeking Intro” stage that convert to first callMonthly
First Call to DD ConversionMeasures success in first callsVary substantially% of first calls that convert to due diligenceMonthly
It is important to view the above metrics as performance indicators for the process, and not for the raise outcome itself. By measuring the above metrics, users can get a precise understanding of various parts of the process.

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Pipeline Fluidity

For early stage rounds, including Pre-seed, Seed or Series A stages, users typically engage with 50+ investors before landing term sheets. In certain market conditions and/or sectors, this number may be higher. A low pipeline fluidity score may be problematic for users looking to raise in a finite period of time, or in instances when the Company has limited runway. Conversely, for late-stage rounds in which users are running a niche process, pipeline fluidity may be less important. Additionally, after a few months of running the process, founders often report “fundraising fatigue”. A high-velocity process, measured via highly pipeline fluidity scores, ensures that your raise does not end up turning into one that takes a very long time.

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Access Success Rate

In most raise processes, founders need to figure out a process that repeatedly leads to warm introductions with investors. For some users, this may come via their existing investors. For others, introductions may come via new connections. A low ASR indicates that the process to land warm introductions is not working well and needs attention. During fundraising season, most users should target at least 10-20 warm introductions each month. The best way to ensure this is through preparation prior to the fundraise in two activities – (a) building connections with VC-backed founders and other key industry players, and (b) Preparing world-class materials that leave an impression.

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Conversion Rates

Conversion rates are particularly useful in helping users understand the effectiveness of how they are approaching investors. If the first call to due diligence conversion stands at less than 10%, then that is a clear indication that the first call is not yielding the sort of results that are typically seen in raise processes.