An investor wants to know what has changed since your business began and what that change suggests about its potential. A long list of activities doesn’t show that customers need the solution or that you can deliver it. Traction is evidence, not decoration.
I’ve screened more than 30 pitches for Keiretsu Forum London, and I keep seeing the same problem. The founder knows the business inside out but can’t explain it clearly to investors, and that can cost them the funding.
Choose indicators that fit your stage
What counts at your stage
Early on, investors want proof that real customers want what you’re building. That could be customer interviews, a test run with a customer, a letter of intent, a working prototype or a step forward with the regulator. Later, they want paying customers, revenue that repeats, customers who stay and margins that hold up.
Not all proof weighs the same. A signed contract beats “they said they were interested” every time.
Put every number in context
A number on its own means nothing. Tell the investor what it measures, over what period and compared with what.
Say whether the revenue is contracted, invoiced or in the bank. They are three different things. If you ran a test with a customer, say what you tested and how many people took part.
So instead of saying, “We have strong early traction and growing customer interest,” say, “Twelve customers tested the product over eight weeks. Four have signed paid contracts worth £60,000 a year.”
Tell the story of your progress
Instead of putting every metric on one slide, build a timeline: what you believed, what you tested, what you learned and what you will do next. It shows a team that learns systematically, not one that is merely busy.
Separate what’s verified from what’s projected
Investors don’t expect every question to be answered. They do expect you to know which results are verified and which are projections. Credibility grows when you show you understand the limits of your evidence.
Check your traction slide
For every number on it, ask:
- What does it measure?
- Over what period?
- Against what baseline?
- Is it verified or projected?
If you can’t answer one of these, the investor won’t be able to either.
Not sure your traction proves anything?
Send me your pitch deck along with a short summary. I’ll tell you which numbers carry weight and which don’t.