Startup traction, burn & capital efficiency · Core
Traction
Also called: startup traction
ELI5
Proof that the startup is moving beyond an idea.
Used in conversation
“The strongest traction is paid retention, not press coverage.”
Definition
Evidence that a venture is gaining meaningful customer, user, revenue, product or market momentum.
Here “Traction” means: Evidence that a venture is gaining meaningful customer, user, revenue, product or market momentum.
Pitch context
You will see “Traction” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches startup traction, burn & capital efficiency.
Why it matters: It helps a reader interpret startup traction, burn & capital efficiency without confusing the measure, decision, role or evidence being discussed.
Sources & evidence · 5
Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossarySupporting source family · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- National Venture Capital Association — Model Legal DocumentsSupporting source family · institutional · checked 2026-08-16
- Y Combinator — Safe financing documentsSupporting source family · practitioner · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16