What VCs Actually Mean by "Traction" (And Why Your Numbers Might Be Better Than You Think)
Traction means measurable evidence that your product or service is gaining adoption in the market — and it doesn't always mean revenue. VCs define traction broadly to include user growth, retention rates, signed LOIs, pilot customers, partnerships, and engagement metrics that prove real demand for what you're building.
TLDR:
Traction is evidence of momentum, not absolute numbers.
$10K MRR growing 40% month-over-month is more exciting to VCs than $50K MRR that's been flat for six months.
What counts as traction changes at each stage, and most pre-seed and seed founders undersell their progress because they're measuring the wrong things.
Last updated: February 2026
"We don't have traction yet" is one of the most common things founders tell me when we start working on their decks. But here's what I learned reviewing thousands of pitches during my seven years as a VC Principal: you almost certainly have more traction than you think. You're just measuring the wrong things or presenting them the wrong way.
The traction slide separates companies that are making real progress from companies that are still at the idea stage. VCs weight this slide heavily because it's the closest thing to proof that your business actually works.
Traction Is About Momentum, Not Position
Here's something counterintuitive: $10K MRR growing 40% month-over-month is often more exciting than $50K MRR that's been flat for six months. VCs invest in trajectory, not position. A small number that's clearly increasing shows momentum. A larger number that's stagnant shows a ceiling.
This means even early-stage companies with modest numbers can have compelling traction if they show clear momentum. The slope matters more than the point.
Different Stages, Different Expectations
What "counts" as traction evolves as your company matures.
Pre-seed traction looks like customer validation, product development milestones, and market signals. You're proving the problem is real and people care.
Seed traction looks like early revenue, user growth, or engagement metrics. You're proving the solution works and people will pay.
Series A traction looks like proven unit economics, repeatable sales process, and market leadership indicators. You're proving the business scales.
The mistake most pre-seed founders make is thinking they need seed-level traction to raise money. You don't. You need appropriate traction for your stage. A pre-seed company with strong customer discovery and LOIs is in great shape. A seed company with the same story and no revenue after 18 months has a problem.
Stop Underselling Your Progress
When founders tell me they have "no traction," I usually find they have plenty. They've talked to 50 customers. They have a working prototype. They have verbal commitments from potential buyers. They have a waitlist with strong engagement.
None of that is "no traction." It's just not revenue yet.
The next post in this series covers exactly what counts as traction at pre-seed, including customer discovery, waitlists, LOIs, and product milestones. If you're raising pre-seed and feel like you have nothing to show, that one's for you.
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KEY TAKEAWAYS
Traction is evidence of momentum, not absolute size. Growth rate matters more than current numbers.
VCs invest in trajectory. A small number growing fast beats a larger number that's flat.
What counts as traction changes by stage. Pre-seed founders don't need seed-level metrics.
Most founders undersell their progress because they're only counting revenue as traction.
Vicki Politis
Founder, DeckToVC · Former VC Principal
Vicki spent 7 years as a Principal at a $400M European VC fund reviewing thousands of pitch decks. She's a Managing Director at Golden Seeds and taught venture capital at Yale. Her clients have raised $17M+ across 15+ rounds. Work with Vicki →
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