Portfolio Strategy

Survival Rate

Survival rate is the proportion of projects at a given pipeline stage that pass the stage gate — continuing or pivoting — versus being stopped or paused. It is a key portfolio-health metric. Early-stage survival rates are intentionally low and rise progressively at later stages: a healthy innovation portfolio is supposed to stop most early bets, because that is the mechanism by which it concentrates investment behind the few that prove out. A near-100% early survival rate is a warning sign, not a success.

Where it fits — and where to go deeper

Survival rates are set per project class as part of portfolio strategy — a Disruptive class is expected to have lower early survival than a Core class — and they make the funnel a designed feature rather than an accident. They are a primary input to portfolio modeling and to setting realistic per-stage benchmarks. For the full treatment, see the Portfolio Management pillar at /supporting/portfolio-management. Related Terminology Index entries: Portfolio Strategy; Portfolio Mix; Class Profile; Stage Gate; Disruptive Innovation.

Sources

  • Venture-capital portfolio practice — staged-investment survival/attrition as a designed feature of a risk portfolio.
  • BRI Associates, Strategy & Innovation Methodology — per-class survival rates as a portfolio-health metric and funnel mechanism (/supporting/portfolio-management).
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