Glossary · Product and traction · Updated
Traction is measurable proof that the market is responding: users, customers, revenue, and above all steady progression. It is the one argument that replaces a narrative in an investor meeting, because it cannot be argued with.
The whole point is separating indicators that count from ones that decorate. Signups, downloads or a social media following only measure your ability to attract attention. Traction starts when someone comes back unprompted, and above all when someone pays.
Consistency matters more than absolute level. An investor prefers 15% monthly growth over eight consecutive months to an isolated spike followed by a plateau, because the first curve extrapolates and the second does not. That is why you show a long series, not a number on a chosen date.
Expectations change radically between stages. At pre-seed, a few dozen genuinely engaged users prove a problem exists. At Series A you need meaningful recurring revenue and net retention that holds. Turning up with the previous stage's traction is the most ordinary reason for rejection.
Example: expected traction by stage
Orders of magnitude observed on European B2B software rounds.
| Pre-seed | 50 weekly active users, or 5 signed pilot customers |
|---|---|
| Seed | €10K to €30K of MRR, growing around 15% per month |
| Series A | €100K of MRR and above, net retention over 100% |
| Most watched indicator | consistency of progression, not the level reached |
| Series length expected | at least 6 consecutive months |
| What does not count | free signups with no repeat usage |
| What also does not count | unsigned letters of intent, partnerships with no revenue |
| What counts double | customers renewing and expanding their contract |
One customer expanding their contract after six months is a stronger signal than three new customers. It proves both that the product holds over time and that it creates enough value to justify additional spend.
The common mistake
Showing a cumulative curve. Total signups since launch can only rise, including while activity collapses. Investors know this and read a cumulative chart as an attempt to hide the monthly one.
Frequently asked questions
How much traction do you need to raise a seed round?+
In European B2B software, a common range is €10K to €30K of MRR with steady growth over at least six months and reasonable retention. Some rounds close with no revenue, but they then require an exceptional team or a demonstrable technological lead.
Which traction metrics should you show an investor?+
The ones reflecting real engagement: recurring revenue, users returning unprompted, retention by cohort, expansion of existing contracts. Avoid cumulative totals and audience figures, which do not prove a problem is being solved.
Related terms
Prepare your raise with the right documents
Onefive brings the dataroom, the investor network and the startup profile into one workspace, built for European teams from pre-seed to Series A.
