What percentage of total incoming deals do venture capital firms invest in?

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saastr.comWhat percentage of total incoming deals do venture capital firms invest in?

Yes, it’s tiny, nominally it’s 1% or so everywhere … but like many statistics, that number is misleading.

Take a look at this funnel from Hunter Walk of Homebrew, a seed-stage venture firm.

Yes, they were intro’d to 1,600 start-ups. But …

First, a whole bunch are simply “not on point”. The team, product, or space obviously does not meet the venture bar. Or, in many cases, the stage is simply off. A seed stage fund meeting a Series B investment opportunity is a waste of time. So Homebrew only met with 476 of these 1,600. Stage 1 of the funnel.

 

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photo CC by Howard Lake

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