VC’s love saying “come back when you make more traction.” Most of the times it’s their way of saying they are passing, but other times they may not have the money to invest and they want to keep the relationship alive. So send updates to all VC’s you meet with!! Below are a few TRACTION related topics to aim for.
1 out of 10 startups makes it from idea to growth stage. Traction across multiple fronts really helps! Here are the three stages for seed companies and some tips on how to make it through! Go from an idea to the product (the go-to-product phase), from product to traction (the go-to-market phase), and from traction to scale (the go-to-scale phase). Many companies falter in the middle, go-to-market phase, exposing themselves to lower valuations, significant financing risks, and worst case shutting down.
1. A Dope Product: what Traction have you made developing an amazing product? The further you are with this the more likely you make it to the growth stage.
2. Strong founding team: ultimately investors invest in people at a pre-revenue stage, what traction do you have in recruiting a strong team to build your product and bring customers? If you can’t attract strong people early on then they don’t believe in the business or you.
3. Hack customer acquisition: nothing better for traction than figuring out a way to hack customer acquisition. how can you acquire hundreds or thousands at a time? Content is king. Social is king. Influencers are key.
4. Work with influencers for brand awareness, marketing, product validation. Send product to people who are influential to your customers.
5. Strategic partnerships are a great way to show traction. Partnerships with channel partners, industry organizations, and even customers. Plenty of startups have been able to gain initial traction by teaming up with other high profile brands. It’s a pretty simple technique that gets your startup in front of the customers that another company has already earned.
6. Test your product! Does it actually work? What traction have you achieved with testing, iterating and user testing?