Traction
Understanding Traction
Traction refers to the progress a startup makes in gaining market acceptance and growing its customer base. It is often used as evidence of demand for the product or service, and can include metrics such as user growth, revenue, or engagement. Traction is a key factor for investors when evaluating the potential of a startup.
Indicators of Traction
- Customer Growth: An increasing number of users or customers over time.
- Revenue Growth: Rising sales and income from the product or service.
- Product Adoption: High levels of engagement and usage by customers.