The Market

What the greatest technology investors say about the Market

Traction is the Only Thing that Matters to Investors

Brendan Baker Greylock Partners

“Through thousands of pitches, I've found that fewer [than] 5% tell a great traction story. [] But first, let's get one thing straight – [traction] is the only thing that matters to investors[.]  Venture investors invest in momentum. Traction is your story of momentum. It's told through quantified evidence of market demand for your product. []

Broadly, I find traction most convincing in the following order:
- Profitability
- Revenues
- Active users
- Registered users
- Engagement
- Partnerships/clients
- Traffic

But this changes depending on your product and market.”  Brendan Baker, Startups: How to Communicate Traction to Investors, Apr. 5, 2011;  http://www.quora.com/Brendan-Baker/Posts/Startups-How-to-Communicate-Traction-to-Investors/comments