WTF is Traction? A 6-Step Relationship Guide to VC

You’ve pitched several angels and VC’s.  Everybody seems to like you but nobody seems to be getting out their checkbooks.  Most of them are telling you that they just need to see a bit of traction before they’d be prepared to invest. Your friends and advisers tell you that this means you need revenue because in this economy VC’s will only fund businesses with revenue.  Unfortunately your advisers are wrong. The “more traction” feedback is a very typical scenario is a down market economy like the one we’re in.  Investors are giving you a version of the “soft no,” which basically means that they’re not prepared to invest now. So if it’s not necessarily revenue that’s preventing an investment, then WTF is traction?  

 

(Full Post: http://www.bothsidesofthetable.com/2009/08/08/wtf-is-traction-a-6-step-relationship-guide-to-vc/


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Mark Suster 

Mark Suster is a 2x entrepreneur and an investor. He joined Upfront Ventures in 2007 as a General Partner after selling his company Koral to Salesforce.com. He focuses on early-stage technology companies.

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Filed Under:
Collection: Funding
Category: Approaching & Attracting Investors