Traction
"Traction" refers to the growth and momentum that a startup is experiencing in terms of its user base, revenue, or other key metrics. It describes the level of adoption and success a startup is achieving in the market.
Traction is seen as an important indicator of a startup's potential for future success, as it demonstrates that the company is gaining acceptance and has the potential for continued growth.
Investors, in particular, often look for signs of traction when evaluating potential investments, as it helps to indicate that the startup is on a path to becoming a viable business.
Examples of Traction:
User growth: If a startup is attracting a large number of users in a short period of time, it can be seen as a positive sign of traction.
User retention: If users come back over time to continue using its product or service.
Revenue: If a startup is able to generate meaningful revenue — “meaningful” is very much stage specicific this is also seen as a sign of traction.
Active users: High levels of customer engagement, such as repeat usage or high levels of customer satisfaction, can be an indicator of traction for a startup.
Partnerships: If a startup is able to form strategic partnerships or collaborations with other businesses, it can be seen as a sign of traction and a demonstration of the company's ability to succeed in the market.
Press: If a startup is receiving positive media coverage, it can help to increase its visibility and credibility, which can be seen as a sign of traction.