Hit Rate

The share of opportunities seen that become investments.

Example

6 investments from 400 opportunities is a hit rate of 1.5%.

A high hit rate can mean excellent sourcing or a pipeline so thin that everything gets taken. The number alone cannot tell you which.

Screening Funnel — The stages an opportunity passes through from arrival to investment, usually intake, first look, diligence and decision, each with its own time cost.
Deal Flow — The stream of investment opportunities that reach an investor, across every channel they arrive through.

A network is kept alive by small, useful contact, not by volume — Maintaining an investment network means a simple system: knowing who matters, staying in touch with a light rhythm, giving before asking and reviewing which relationships actually produce value. (9 min)
How many do you have to see to make one investment? — Put real numbers on your funnel and two things become obvious: how fast a first look has to be, and how much sourcing you actually need to support the portfolio you are trying to build. (12 min)
A process you actually run beats a better one you do not — Screening only compounds if it is written down, identical every time, and produces a record - which is what turns a year of declined opportunities into knowledge about a category. (11 min)
Narrow enough to reject things, wide enough to have something to buy — A thesis that admits everything is useless and one that admits nothing leaves you idle. The right width depends on how many opportunities you see and how much capital you need to deploy. (10 min)