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Three or five year ago your startup can get founded with little user engagement or apps downloads, today it’s might take a rapid user engagement or few hundred thousand downloads of your apps for serious funding to take place.
As the ecosystem get competitive day by day, the dynamics of raising fund also keeps changing with the trend, that is why it a good idea to look at companies that recently get funded and see where the bar is right now.
One thing you need to understand is the better your prospective investor know what you are doing, the less traction they need to see before investing in your startup, if you are fortunate to meet an investor who do not understand what you are really doing, then you have to do your homework very well with regard to traction.
It is advisable to approach prospective investor who have investment in companies similar to yours or in the same industry. rejection is will sure come, but don’t give up, except if you are very lucky to have investor coming to you, some investor are looking for product engagement which means customers using your product to solves their problems or need but i believe sustainable product engagement will be hard for any investor to ignore.
The are other factors that might hinders an investor from make investment into your company such as time,expertise and investment goals, always remember to indicate your interest in your investors networks in during your pitch.
So i as ‘ How Much Traction is enough for an Investor ? ‘
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