What is Sales Velocity?
Also known as: Pipeline velocity
Sales Velocity is how fast revenue moves through your pipeline. It combines four pipeline metrics (count, deal size, win rate, cycle length) into one number that tells you the rate at which you generate revenue.
What is Sales Velocity?
Sales Velocity captures the dollar-per-day pipeline output. It tells you how much revenue you can expect to close per day at current pipeline conditions.
How to calculate Sales Velocity
Sales Velocity = (# of opportunities × average deal size × win rate) / sales cycle length (days).
Higher velocity = more revenue per day. Improving any of the four inputs raises velocity.
Why this framing is useful
Most teams focus on one lever at a time (close rate, deal size). Sales Velocity forces a portfolio view — you might raise deal size 10% but if cycle length also doubled, velocity dropped.
Why it matters
VC due diligence increasingly uses velocity as a forward indicator. If velocity is trending up, your business is accelerating. Trending down — investigate which of the four inputs is the bottleneck.