Metrics & Performance
Traction
Measurable evidence that a startup's product is gaining market adoption — revenue growth, user growth, retention, and engagement are common traction metrics.
Traction is the proof that your startup is working — that real people with real problems are finding, using, and paying for your solution. For VCs, traction is the most credible signal available at early stages. The nature of relevant traction depends on stage and business model: Pre-product: letters of intent, pilot agreements, waitlist size. Early product: first paying customers, weekly active users, initial NPS. Seed/Series A: MRR/ARR, month-over-month growth rate, retention curves, NRR. The most important traction characteristic isn't absolute size — it's the growth rate and quality. Growing 25% month-over-month from a small base is more compelling than flat growth at significant scale. Investors want to see evidence that product-market fit exists and that the company can efficiently acquire and retain customers.