Traction Capital isn’t your typical venture capital or private equity firm chasing oversized deals, flashy logos, or mythical unicorns. We invest in early-stage startups and acquire established businesses across Minnesota and the Midwest. Led by entrepreneurs who have built, scaled, and successfully exited businesses, we partner with founders and business owners using proven playbooks, operational expertise, and smart capital for real growth.
Built and led by entrepreneurs with proven growth experience and backed by investors, more than 85% of whom are entrepreneurs or business owners themselves.
We follow a proven process from investment through exit, helping portfolio companies implement EOS and build lasting value.
We go beyond capital, providing strategic guidance, operational support, connections, and hands-on partnership.
We invest where we live, driving the growth of Midwest entrepreneurs and businesses.
Capital is only the beginning. Having built, grown, and exited businesses ourselves, we understand the challenges that come with growth. We put that experience to work helping entrepreneurs and business owners achieve what they couldn’t with capital alone. Here’s how we do it.
Whether you’re looking to grow your business, raise capital, or explore an exit, we’d love to learn more about your business. Connect with Traction Capital to see if we’re the right partner for your next chapter.
We’re proud to partner with entrepreneurs and business owners building exceptional companies across the Midwest. Our portfolio reflects the businesses we’ve helped grow through smart capital, strategic guidance, and hands-on support.
Scott Litman is a serial entrepreneur, advisor, and investor who brings decades of hands-on startup and growth experience to Traction Capital. With five successful company exits and a long list of accolades, he’s a driving force behind innovation and scale in Minnesota’s business community.
As a Strategic Growth Partner, Scott has an immense level of experience in entrepreneurship that he brings to Traction Capital. He has gone from startup, funding, growth and exit five times (Imaginet Inc, Spot Buy Spot, Imaginet LLC, Magnet 360 & Lucy). In that time, he has received a number of honors & awards including E&Y Entrepreneur of the Year, Business Journal Titan of Technology, University of Minnesota Outstanding Achievement, Smart Business Dealmakers Hall of Fame, Twin Cities Business 100 People to Know / Watch (3 times), Minnesota Business The (Real) Power 50 and Business Journal 40 Under 40. Along the way, Scott has experienced being #1 in The Business Journals Fast 50, made the Inc 500 and has worked with over 25% of the Fortune 500.
Scott founded the Minnesota Cup, the largest state wide business plan competition in the US and has been on the Board of Advocates for Backpack, a student run marketing and communications agency out of the University of Minnesota.
Scott has served on the BOD, Advisory Board or been advisor to a number of startups that have had tremendous success including Enstratus (acquired by Dell), InStereo (acquired by Salesloft), HealthSimple (acquired by J&J), Hollywood Fashion Secrets (acquired by American International Industries), I See Me (acquired by The McEvoy Group) and more.