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The Official SaaStr Podcast: SaaS | Founders | Investors cover image

SaaStr 692: How To Perfectly Pitch Your Seed Stage Startup With Y Combinator's Managing Director Michael Seibel

The Official SaaStr Podcast: SaaS | Founders | Investors

NOTE

The Importance of Traction: Communicating Progress and Momentum in a Start-up

To convey traction effectively, it's important to clearly explain your accomplishments since starting your company. Traction is not dependent on being pre-launch or having a great graph, but rather on demonstrating what you have achieved and why it is impressive. For example, launching an iOS app in test flight with 100 users in one month is impressive, even if usage is not high and the app is not publicly launched. On the other hand, spending two years with 100 users in test flight is not impressive. Investors are looking for momentum and the ability to get things done quickly, rather than focusing solely on revenue or user numbers. It is crucial to include the timeframe when communicating your accomplishments. Many founders make the mistake of listing their achievements without specifying the time it took to accomplish them.

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