What is The Traction Gap?
The Traction Gap is the period between a startup’s initial product release and the product’s ability to generate traction in the market. What is considered to be traction can be subjective, but it is typically correlated to the velocity of revenue growth, user engagement, downloads, usage or other variables that suggest market acceptance and signal a positive growth trajectory.
Startups must successfully reach a series of increasing value inflection points along the Traction Gap Framework path. These points include:
- MVC (Minimum Viable Category): Name and definition of the category a startup is attempting to create or redefine – and evidence that the category is large enough to warrant pursuit.
- IPR (Initial Product Release): First publicly developed product iteration.
- MVP (Minimum Viable Product): Product has achieved minimal customer validation metrics.
- MVR (Minimum Viable Repeatability): Solution-grade product, business model, and repeatable sales/marketing.
- MVT (Minimum Viable Traction): MVR + multiple quarters of growth.
The Traction Gap value inflection points represent critical moments in time for a startup. As startups reach each successive value inflection point, they increase in value because they have demonstrated a certain amount of market acceptance and risk reduction.
A startup must have enough capital to ensure it does not fall short of reaching the next Traction Gap value inflection point. Otherwise, the startup may face significant challenges raising new capital.
Download the complete Traction Gap Framework here.
What is The Traction Gap Institute (TGI)?
The Traction Gap Institute (TGI) was founded by Wildcat Venture Partners to help entrepreneurs traverse the traction gap.
Industry statistics show that nearly 70% of startups fail to return invested capital.
To succeed, startups must successfully go from an idea to product (the go-to-product phase), from product to traction (the go-to-market phase), and from traction to scale (the go-to-scale phase).
However, what occurs between an early-stage idea and a company that is scaling has remained largely undocumented. Consequently, too often companies stumble in the middle, go-to-market phase, as they fail to generate sufficient momentum to attract new customers or users, and, as a result, investors.
TGI’s mission is to track, capture and publish the metrics and tactics startups need to successfully traverse the Traction Gap. TGI has interviewed dozens of CEOs and founders who have successfully made it through this difficult period, and captured their go to market tips, tricks and techniques.
TGI hosts conferences, workshops and other events where it shares these findings and encourages entrepreneurs and venture capital firms to share best practices so that early stage startups can successfully travers the Traction Gap.
Become A Member Of The TGI
Interested in learning more about the Traction Gap? Become a member of the Traction Gap Institute.
Membership is free and includes:
- Access to research data as it is published that contains the tactics you need to traverse the Traction Gap.
- Invites to upcoming Traction Gap events and workshops so you can solve Traction Gap issues.
To become a member, click on join at the top of the page.
The TGI has developed the Traction Gap Partner Program to enable individuals, companies and organizations to contribute to the ongoing development of the Traction Gap Framework.