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

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