How Much Traction is Enough For Investors?

Fundraising is one of the long awaited moment that must founder can’t wait to get to move their idea to the next level but they have no ideal of how much traction is enough to get an investor interested in their
startup, this is a moving train, because more and more startup’s are achieving more with less resource at their disposal.

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 Investors ? ’

source from : http://www.techarewa.com/2016/02/how-much-traction-is-enough-for-investor.html

This is from a blog post by Mukund Mohan. You can read more here.

If you are expecting 10 Million users for your product (best case scenario) for your product in 3 years (36 months) then you better have between 10,000 to 50,000 users when you go to get seed funding. To get into an accelerator you will need to have 2000 to 25,000 users at least.

If you are a B2B startup and you are expecting 5000 paying customers, in 36 months, to get seed funding you need to have 5 to 10 customers for a seed round (more is better) and at least 2-5 customers to get into a seed program.

I didn’t read this, quite too long, and life is too short. But from the title, let me say this : you shouldn’t be building for investors. But for customers. Build something people want.

Most things will be fine from there onwards.

The post is all about getting user engagement with your product, by this way most investors won’t ignore you.