Evaluating Traction

Traction is only meaningful with its denominator attached. $8K MRR from 22 customers acquired over eighteen months tells a different story than the same figure from two customers acquired last quarter.

Look at growth rate rather than absolute size, and at the consistency of that rate across several months. Look at retention before you look at growth: a company adding customers while losing an equal number is not growing, it is churning through a market.

Distinguish contracted recurring revenue from pilots, letters of intent and one-time services revenue. All three appear in decks. Only one of them compounds.