Something you would commonly hear from an angel investor. So
what is this traction they speak about?
Traction literally means the force used to create motion
between a body and a surface. In the case of startups, we can assume the
surface to be the market and the body to be the startup. Traction would imply the
push we would need to give a startup to acquire customers. Since traction is
assessed primarily at the initial stages of a startup, the customers referred
to here would be the initial customers of the startup.
In analyzing an early stage startup, investors typically
want to see the response the startup gets from it’s initial promotions, specifically
metrics like customer acquisition, usage and feedback. Getting good traction
shows that the concept has sufficiently proved itself and that there is
evidence that a market exists.
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