What is the conviction floor, and can I change it?
The conviction floor is the minimum confidence your CEO needs before it places a bet A number you choose together during the launch interview. And yes, you can change it any time: raise it for fewer, stronger bets, or lower it to let your fund act on thinner edges more often.
How it works in practice
For every opportunity, your CEO forms a view of the real probability versus the market's price. That gap, and how sure it is about it, becomes a conviction score. Below your floor, the idea is skipped and logged. At or above it, the bet can be sized and placed.
Raising vs lowering it
- Raise the floor → fewer bets, each on a stronger edge. Quieter fund, steadier style.
- Lower the floor → more bets on thinner edges. Livelier fund, more variance.
Neither is "correct", it's the personality of your fund, and it's your dial as Chair.
You see what it skipped
The floor isn't a black box: ideas that fell below it appear in your reports too. Watching what your CEO passed on, and whether those passes aged well, is one of the fastest ways to tune the floor to your taste.