Traction Required for Investment

Recently I met with an entrepreneur that’s working on a new marketplace idea. We talked for a bit and I challenged some of his assumptions and gave anecdotes from other industries. Then, when it came to the “ask” about investing, I explained that raising money simply on an idea with no traction is nearly impossible. The best thing to do: figure out how to get the app built and customers loving it.

Here are a few thoughts on traction required for investment:

Traction is a critical element for raising money, and entrepreneurs would do well to focus on getting the product right and customers on it first.

What else? What are some more thoughts on traction being required to raise money?

One thought on “Traction Required for Investment

  1. Totally agree! Not only do you need some traction to attract investors, but their money is worth less if you have already proven your model. Stay focused on increasing sales!

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.