Models for drop-off in VC funnels

Hey everyone, looking for a resource to build a model for drop-off in VC deal funnels. Basically, the drop off that a small team would see from introduction to evaluation to funding. We have a minimum number of investments we hope to make, but market forces might allow us to flex beyond that number. Any insight would be much obliged! (edited)
  • Keyona Meeks: I haven’t seen “drop-off” used in that context before, could you provide some more clarity on what resource you’re looking for?
  • Jonathan Azoff: Well, I have a basic understanding that at the top of the funnel (deck review) you have the most amount of volume, and each deck or deal gets the smallest amount of time per analyst or partner. I’ve seen firms even use ratings systems to quickly sort and filter at this stage. the subsequent steps at each firm will start to differ as the deal grows in likelihood, but the time spent analyzing and engaging each deal increases per partner. At some point, the deal hits the IC and there is likely the most amount of time debating and reengaging before the deal goes through. I’m trying to model this, so that I can figure out what a reasonable top of funnel is to get to our expected deal numbers.
  • David Teten: high-level: market norm is that 1 out of 100 deals reviewed are consummated. for some data: go to https://teten.com/speaker/deals, and go to page 8 of the third embedded file “Best Practices of VC Funds in origination”