Revenue Traction

Definition

Proof that actual humans are willing to pay actual money for your product, the ultimate validation for the venture capital community.

Example Usage

We've achieved $50K MRR and growing 15% month-over-month, which demonstrates strong revenue traction.

Origin

Business terminology adapted for startup validation

Fun Fact

Series A investors typically look for startups with $10K-100K MRR

Source: Contemporary startup terminology

Related Terms

Beginner

hockey stick growth

The mythical J-curve trajectory where metrics stay flat forever and then suddenly shoot straight up, resembling a hockey stick. Every founder claims this is coming; few actually achieve it.

🚀 Startup / VC

Intermediate

conviction

A VC's strong belief in an investment thesis despite contrary evidence or market skepticism. The confidence to write a check when everyone else thinks you're insane—sometimes brilliance, often delusion.

🚀 Startup / VC

Intermediate

network effects

The magical property where your product becomes more valuable as more people use it—or what every social startup claims to have despite zero evidence. True network effects are rarer than honest user growth numbers.

🚀 Startup / VC

Intermediate

yellitocracy

An organizational dysfunction where the loudest voice wins every argument, regardless of actual merit or logic. Common in toxic startups and poorly-managed teams where decibel level is somehow confused with leadership ability, ensuring the best ideas often die in quiet corners while mediocre ones get screamed into existence.

🚀 Startup / VC

Advanced

reserve ratio

The percentage of a VC fund set aside for follow-on investments in existing portfolio companies. The math that determines whether your investor can actually support you in the next round or just awkwardly watch.

🚀 Startup / VC

Intermediate

SAFE (Simple Agreement for Future Equity)

A Stripe-era instrument designed to be even simpler than convertible notes—basically a promise to give equity someday, maybe.

🚀 Startup / VC

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