What is Traction?

Traction is a metric that demonstrates a startup is making tangible progress and has a viable business model. It is the proof that your product is resonating with your target market. Traction is not just about revenue; it can be measured in various ways depending on the business.

For Startups: For an early-stage startup seeking funding, demonstrating strong traction is the most effective way to convince investors. It moves the conversation from "this is a good idea" to "this is a working business." What constitutes impressive traction depends on the startup's stage and industry.

Examples: For a SaaS startup, traction could be growth in Monthly Recurring Revenue (MRR). For a consumer app, it might be the number of Daily Active Users (DAU). For a pre-revenue startup, it could be a long waitlist of potential customers or successful pilot programs.