Entrepreneurs investing in entrepreneurs across Minnesota and the Midwest.
Traction Capital is a Minnesota-based venture capital and private equity firm investing in entrepreneurs and business owners across Minnesota and the Midwest.
Built by entrepreneurs for entrepreneurs, we believe great companies need more than capital to succeed. Through smart capital, proven processes, and experienced guidance, we partner with founders and business owners to accelerate growth, navigate transitions, and create long-term value.
Our purpose is simple: Helping founders and businesses break through. It’s more than a statement – it’s the philosophy behind every investment we make and every partnership we build.
Proven experience in founding and growing businesses from the ground up
We help entrepreneurs and small businesses get what they want for the greater good
We support entrepreneurs with community, givebacks, and program involvement to combat the isolation of leadership
We grow ourselves, our company, and our founders – believing financial success follows experience
At Traction Capital, we use the Entrepreneurial Operating System® (EOS) to help build stronger companies. It’s a proven framework that creates alignment, accountability, and disciplined execution—helping leadership teams stay focused on what matters most.
For founders and business owners, EOS provides a clear roadmap for growth by aligning teams, clarifying priorities, and solving challenges proactively. As investors, it allows us to partner more effectively with the companies we support and create lasting value together.
Helping founders and businesses break through starts with proven processes. EOS is one of the ways we help make that happen.
Traction Capital was built on relationships formed through the Entrepreneurs’ Organization (EO) of Minnesota, and we remain a proud sponsor today. Many of our team members and investors are EO members who continue to leverage its network, education, and peer community to build successful businesses.
We have also been privileged to partner with EO Minnesota to run the EO Accelerator (EOA) program. This valuable program helps Minnesota entrepreneurs grow through:
This program is created to help companies scale up. To qualify for the EO Accelerator program you must meet the following criteria:
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.
