Traction Slide

Show There’s a Demand for You.

Traction is an important metric for startups as it provides evidence of your potential.

Key indicators of startup traction:

User Engagement

• Do you have active users?
• What’s the retention rate?
• How much time do they spend engaging?
• How frequently are they there?

Plus any other metrics you think are relevant. If you can show increasing user engagement, it will indicate customers find value in your product or service and will use it.

Revenue Growth

If you are generating revenue, the number increasing over time is a strong indicator of traction. This can be measured by:

• Total revenue growth rate
• Annual recurring revenue
• Monthly recurring revenue
• Average revenue per user

An increasing amount of money coming in is ultimately what an investor is looking for. You can reference here and then go into the numbers on the Financials slide later.

Customer Acquisition

Obtaining customers is evidence there is market demand and validates your value prop.  Customers are often measured by:

• Number of new customers acquired within a specific time frame
• Customer conversion rate
• Customer acquisition cost

Demonstrate your ability to consistently attract and convert customers.

Strategic Partnerships

Mention any alliances you’ve made with strategic partners, distributors, industry leaders, or influencers. Mention how they’ll benefit the company, whether it’s access to a larger market, distribution channels, or something else.  Meaningful partnerships can advocate for your credibility.

Funding

Investors will conduct due diligence to assess your company from top to bottom before making an investment decision. Raising funds from a reputable investor validates the startup’s potential, and also importantly — feeds the FOMO.  A list of rounds of investment will go in your current portfolio on the Ask slide, so it’s at your discretion when and where they belong in your story.

Crowdfunding will offer a different type of traction indicator, and that is market acceptance and popularity.  A successful crowdfunding campaign will show that people are interested in what you’re offering, willing to take action on it, and that you have an established audience to leverage.

Media & Recognition

If you’ve been in the press or publications, received industry awards, or been given positive reviews, you can show it here.

• • • • • •

Metrics and indicators of traction will vary depending on the startup, industry, and business model. Identify key metrics that align with your goals and then monitor them over time to assess.

This slide will look very different for everyone.  Keeping with the “Less is more” mentality, choose metrics to highlight and focus on, have the others ready in the Appendix for anyone interested.