How Much Traction Do You Need to Win Over Investors in a Seed Round?

The answer to that question is simple and straightforward, and it’s not the answer that a lot of founders expect. This is because investors have a unique mindset, and the term ‘traction’ can mean different things to an investor than it does it for a founder.

When founders hear the word ‘traction,’ they think ‘customers’. This way of thinking can put a lot of unnecessary weight on a start-up founder’s shoulders. Of course, if you can go to an early or pre-seed round and show an investor that your product or service is already generating consistent and growing revenue, that’s always preferred. However, growing customers and generating revenue is easier said than done if you’re an investable entrepreneur whose business is just beginning.

Related: My Investment Campaign Isn’t Working–What Am I Doing Wrong?

Fortunately, ‘traction’ doesn’t have to mean paying customers as far as investors are concerned.

Understanding traction

When you’re looking for investment, it’s much more helpful to think of traction as ‘validation.’ Think: What kinds of validation can you show an early stage investor to prove your idea is worth investing in?