First Stage Investor

Startup Insider: The Importance of Traction

Startup Insider: The Importance of Traction
By Early Investing
Date October 12, 2020

As angel investors, we’re told to look for startups with traction. We’re told that startups with real revenue, customers and growth are the best startups to invest in.

But when investors don’t like a startup, they find reasons to ignore traction. Some of them are good — some not so good. The same is true for startups with no traction. There are some good reasons to like startups that lack traction — and some not so good reasons.

So what’s the truth? Is all traction created equal? When is it ok to not have traction? Andy Gordon and Vin Narayanan answer both questions and discuss all things traction in this edition of Startup Insider.


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