Pipeline is the inventory of in-progress opportunities—deals for investors, prospects for sellers—not yet won or lost, organized by stage and probability.

How it works

VC firms track pipeline in CRM: sourced companies, first meetings, diligence, partner meeting, term sheet, closed. Partners review conversion rates and time-in-stage. Startups track sales pipeline: lead, qualified, demo, proposal, negotiation, closed-won. Metrics include total value, stage weightings, and velocity.

Origination feeds the top of VC pipeline; pipeline coverage compares pipeline to quota or fund deployment targets. Weak pipeline signals future revenue miss or slow investing pace.

Healthy pipeline hygiene includes aging rules—deals with no activity for 60 days move to nurture or pass. For startups, CRM discipline prevents reps from overstating late-stage pipeline that never progressed past a first call.

Weekly pipeline reviews keep stage definitions honest—what counts as qualified versus meeting held should be written down so new reps do not inflate early stages.

Why it matters

• Founders: Credible pipeline supports fundraising narratives—be honest about stage and timing, not inflated totals.
• Investors: Deal pipeline health drives fund deployment; sales pipeline diligence validates go-to-market claims in portfolio reporting.

Separate marketing qualified leads from sales qualified opportunities so pipeline stages stay honest.

Common mistake

Counting stale leads as active pipeline without updating stages. Old opportunities inflate coverage and mislead boards or LPs.

Investors in diligence often ask for stage-weighted pipeline export from CRM, not slide summaries alone. Consistent stage definitions make those exports trustworthy week to week.

Related ideas

See origination, opportunity, pipeline coverage, and CRM stages.