What is traction?
Whether they’re reading an elevator pitch or listening to a
presentation, investors care most about actual traction in a seemingly
large market.
Traction is a measure of your product’s engagement with its
market, a.k.a. product/market fit. In order of importance, it is
demonstrated through profit, revenue, customers, pilot customers,
non-paying users, and verified hypotheses about customer
problems. And their rates of change.
A story without traction is a work of fiction. You must start
building your product and start testing it with your market before
you start raising money.
If this seems impossible, reduce scope. Put your idea on a piece of
paper and start testing it with customers: “Does this solve your
problem? How much would you pay for it?” This is the kind of
data that can sway investors, even if your product is only a piece of
paper.
Investors want to invest in startups that will be successful with or
without them. And those who succeed don't wait for investors
before they begin to create. They can't wait to carry their idea
forward.
