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GLOSSARY

Traction

Traction is measurable evidence that customers want and use your product. It is the most persuasive element of any pitch because it replaces opinions with data. What counts as traction depends on stage: pre-seed traction might be waitlist signups and letters of intent; seed traction is paying customers and early retention data; Series A traction is repeatable growth with strong unit economics.

Why it matters

Traction is proof that your idea works in the real world. It is the most persuasive part of any pitch because it replaces opinions with evidence.

What counts as traction depends on your stage. Pre-seed: waitlists, LOIs, pilot commitments. Seed: paying customers, MRR growth, retention. Series A: repeatable growth engine, strong unit economics.

Types of traction

Revenue traction: MRR/ARR growth, paying customers, expansion revenue.

User traction: DAU/MAU, activation rates, engagement depth.

Market traction: waitlists, letters of intent, partnerships, press coverage.

Technical traction: product milestones, patents, key hires.

What investors look for by stage

Pre-seed: problem validation, early user interest, founder-market fit.

Seed: first paying customers, early retention data, clear ICP.

Series A: $1-2M+ ARR, strong retention, repeatable acquisition, clear unit economics.

Common pitfalls

Showing vanity metrics (downloads, signups) instead of value metrics (active users, revenue, retention).

Cherry-picking your best month. Show the trend, including the messy parts.

Confusing activity with traction. Users signing up is not traction. Users retaining and paying is.

How to show in your deck

Traction slide: your strongest 3-5 metrics with growth trend. Lead with what is most impressive. Add logos and quotes for credibility.

Deck snippet

$85k MRR (+18% MoM); 120 paying customers; M6 retention 61%.

Frequently asked questions

Related terms

Product-market fitMRRCohort retention

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