How to Craft a Traction Slide for your Pre-Seed Pitch Deck with No Product and No Revenue

For growth and later stage startups with customers and revenue, the traction slide is a great place to showcase impressive metrics and growth.

However, for pre-seed startups with no product, no customers, and no revenue, the traction slide can feel daunting.

Investors crave traction. It's the evidence that validates your market need, demonstrates product-market fit, and ultimately, convinces them to bet on your vision. But how do you create a compelling traction slide when you haven't even launched yet?

The good news is, traction isn't just about sales. While established metrics like revenue and user growth are undeniably impressive, early-stage traction can come in many forms. The key lies in demonstrating forward momentum.

Having been through the fundraising trenches myself, raising capital for my own startup from beondeck.com and witnessing the struggles of countless pre-seed founders, I understand this challenge intimately. Over the years, through hundreds of consultations and thousands of pitch deck reviews, I've seen brilliant founders overcome the "no product, no revenue" hurdle and create winning traction narratives. Here's how you can too.

The Importance of Traction for Investors

Let's be honest, investors are looking to back winners. Traction is the first glimpse into your ability to turn an idea into a thriving company. Imagine two pitches: one boasting a passionate founder with a clear market opportunity, and another showcasing the same passion, but with evidence of early customer interest and a validated problem-solution fit. Which one screams "investment potential"?

Traction signals:

Market Need: A pre-existing problem with customers willing to engage demonstrates a real need your solution addresses.
Product-Market Fit: Even without a finalized product, early traction indicates you're on the right track and customers resonate with your proposed solution.
Execution Capability: The ability to generate pre-sales or build a strong pre-launch community shows you can execute your vision and attract customers.

These are the qualities investors want to see in early-stage companies. So how do you showcase them without the traditional metrics at your disposal?

Traditional Metrics vs. Early-Stage Reality

Let's face it, traditional traction metrics like monthly active users (MAU) or revenue simply aren't achievable for a pre-launch startup. But don’t worry, there are alternative paths to crafting a compelling traction story.

Here are some key differences between traditional and early-stage traction:

The key takeaway? Focus on metrics that showcase your ability to connect with potential customers, validate your market need, and demonstrate early interest in your startup.

Now, let's dive into the tactics you can leverage to build this alternative traction narrative.

Overcoming the No Product, No Revenue Hurdle

Building traction in the absence of a product might seem like an uphill battle, but it's not insurmountable.

Here are three powerful tools you can use to demonstrate forward momentum:

1. The Power of Pre-Sales

Pre-sales are a game-changer for pre-seed startups. The core concept is simple: you sell your future product or service to potential customers before it's even built.

Remember, this is the most valuable traction indicator!

This tactic demonstrates several key things:

Market Need: Someone is willing to pay for what you're building, validating there's a real problem your solution addresses.
Value Proposition: Customers understand your value proposition and are willing to invest in it before they even see the final product.
Execution Capability: Landing pre-sales shows you can effectively communicate your vision and convince customers to believe in your ability to deliver.

Defining Pre-Sales:

There's flexibility in pre-sales strategies. It could involve:

Taking deposits: Secure early commitments with a small, refundable deposit.
Selling subscriptions: Offer early-bird subscriptions with discounted rates or exclusive features.
Partnering with early adopters: Find companies willing to pilot test your product in exchange for feedback and pre-launch pricing.

Quantifying Pre-Sales for Your Traction Slide

Turning pre-sales into a compelling traction metric requires careful quantification. Instead of raw numbers, focus on showcasing the impact of your pre-sales. Consider these metrics:

Total Pre-Sales Value: This represents the total dollar value of pre-sales secured.
Average Deal Size: This showcases the average amount customers are willing to commit.
Conversion Rate: Calculate the percentage of customers who converted from initial contact to pre-sale.
Customer Profiles: Highlight the types of customers making pre-purchases (e.g., industry, company size).

For example, instead of saying "We have 10 pre-sales," say "We've secured $50,000 in pre-sales from 20 early-adopting enterprises, demonstrating an average deal size of $2,500 and a conversion rate of 20%."

Visualizing Pre-Sales Data:

Use charts and graphs to make your pre-sale data impactful. Consider:

A pie chart showing the distribution of pre-sales by customer type.
A bar graph comparing pre-sales revenue to your projected revenue.
A line graph illustrating the growth in pre-sales over time (if applicable).

Remember, the goal is to show investors that your pre-sales are not just isolated incidents, but a strong indicator of future market potential.

2. Leveraging Pre-Commitments

While pre-sales are the gold standard, pre-commitments can also bolster your traction story. This involves securing non-binding commitments from potential customers to purchase your product once it's available. While not as concrete as pre-sales, they still demonstrate market interest and can be valuable when combined with other traction indicators.

Gathering Pre-Commitments:

Conduct surveys and polls: Ask potential customers if they would purchase your product.
Utilize landing pages: Offer a sign-up form with an option to express interest in purchasing.
Leverage social media: Use polls and surveys to gauge interest.

Presenting Pre-Commitments Effectively:

Quantify interest: Showcase the number of pre-commitments you've received.
Highlight demographics: Describe the types of customers showing interest.
Explain follow-up plans: Outline how you plan to convert these commitments into sales.

Remember, the key is to present pre-commitments as a strong signal of future demand, not as a replacement for actual sales.

3. The Value of Customer Discovery

Even without pre-sales or pre-commitments, deep customer discovery can be a powerful traction indicator. By understanding your target market's pain points, challenges, and desires, you demonstrate a thorough understanding of the problem you're solving.

Conducting In-Depth Customer Interviews:

Identify key stakeholders: Talk to potential customers, decision-makers, and influencers.
Uncover pain points: Understand the specific problems your target market faces.
Validate product-market fit: Ensure your solution aligns with customer needs.

Transforming Customer Insights into Traction Data:

Create customer personas: Develop detailed profiles of your ideal customer.
Build a problem statement: Clearly articulate the problem your product solves.
Develop a value proposition: Showcase how your solution directly addresses customer pain points.

By presenting detailed customer insights, you demonstrate a deep understanding of your market and a clear path to product development.

In the next section, we'll explore how to weave these elements into a compelling traction story that resonates with investors.

Crafting a Compelling Traction Story

Now that you've gathered data on pre-sales, pre-commitments, and customer discovery, it's time to construct a compelling narrative for your traction slide. Remember, your goal is to convince investors that you're building something with real market potential.

Structuring Your Traction Slide

A well-structured traction slide should provide a clear overview of your progress while highlighting key metrics. Consider this structure:

Headline: A concise statement summarizing your traction achievements (e.g., "Strong Pre-Sales Validate Market Demand").
Key Metrics: Showcase your most impressive numbers (e.g., total pre-sales, average deal size, number of pre-commitments).
Customer Validation: Highlight key customer insights and testimonials.
Visuals: Use charts, graphs, or images to enhance data presentation.

Visualizing Your Traction Data

Visuals are powerful tools for storytelling. Choose charts and graphs that effectively communicate your message. Consider these options:

Progress bars: Illustrate the percentage of pre-sales or pre-commitments goals achieved.
Customer heatmaps: Visualize geographic or demographic data of your target market.
Customer journey maps: Showcase the customer's experience and pain points.

Remember, the goal is to create a visually appealing slide that's easy to understand and memorable.

Telling a Consistent Story

Your traction slide should align with the overall narrative of your pitch deck. Ensure it reinforces your key messages and supports your value proposition.

Here are some tips:

Connect the dots: Explain how your traction data supports your market opportunity and problem-solution fit.
Highlight milestones: Showcase key achievements and progress made.
Address potential concerns: Use Score My Deck to anticipate investor questions and provide relevant data.

A consistent story builds credibility and increases investor confidence.

Additional Tips for Maximizing Your Traction Slide's Impact

While the foundation of your traction slide is data, storytelling is equally important.

Here are some additional tips to make your slide truly shine:

The Role of Storytelling

Humanize your data: Share customer stories or anecdotes to bring your traction to life.
Use visuals: Images and icons can help tell your story more effectively.
Keep it concise: Focus on the most important points and avoid information overload.

Anticipating Investor Questions

Prepare for tough questions: Anticipate potential objections and have data-driven responses ready.
Highlight competitive advantage: Explain how your traction differentiates you from competitors.
Showcase future potential: Discuss your growth plans and how you'll scale your business.

Continuously Refining Your Traction Narrative

Track progress: Monitor your traction metrics and update your slide regularly.
Seek feedback: Ask Score My Deck, investors and mentors for their insights.
Iterate and improve: Continuously refine your traction story based on feedback.

A dynamic traction slide evolves as your business grows. By staying agile and responsive, you can maximize its impact.

Conclusion: Turning Challenges into Opportunities

While the absence of traditional traction metrics can be daunting for pre-seed startups, it's not an insurmountable challenge. By leveraging pre-sales, pre-commitments, and customer discovery, you can create a compelling traction story that showcases your potential. Remember, traction is not just about numbers; it's about demonstrating market demand, product-market fit, and your ability to execute.

With careful planning and execution, you can turn your traction slide into a convincing data point for securing investment and accelerating your startup's growth.

By following these guidelines and incorporating the insights shared, you can create a traction slide that not only impresses investors but also sets the stage for your startup's success.

Check out Score My Deck to figure out if your traction slide is optimized for fundraising.