The bigger issue for investors is showing progress towards de-risking the business model. Traction is one of the most compelling examples of how much you have reduced the risks to the investor by showing that people are prepared to use or pay for what you are making.
In simple terms, traction, more or less in order that I'd find them to be compelling evidence in absence of other data:
- Number of Free Beta users.
- Number Paying Beta users.
- Number Paying customers.
- Total Revenue.
- Growth rate trend in the number of free customers.
- Growth rate trend in the number of paying customers.
- Growth rate trend in total revenues.
Of course, in isolation growth is not enough. My business selling $20 bills for $10 had phenomenal growth, but for some reason no investors would bite, given my unit economics...