Contact Us

Get In Touch

Email

info@tractioncapital.com

Hours

Mon-Fri: 9AM - 5PM
Sat - Sun: Closed

Interested in investing with Traction Capital or looking for other information? Please fill out the form below. Founder seeking a venture capital or private equity investment? Please apply for funding here. We will do our best to get back to you quickly.

Frequently Asked Questions

Traction Capital stands out because of our:

  • Deep roots in the Midwest startup ecosystem
  • Commitment to long-term partnerships with founders
  • Hands-on approach to operational support and scaling
  • Strong focus on community-building and fostering innovation locally
  • Entrepreneurial experience and approach
  • Deep roots in the Midwest startup ecosystem
  • Hands-on approach to operational support and scaling
  • Use of the Entrepreneurial Operating System® (EOS) process
  • Commitment to long-term partnerships with founders
  • Network of business owners to support the founder
  • Strong focus on community-building and fostering innovation locally

We primarily focus on growth-stage companies in the Midwest with proven traction and a clear path toward sustainable profitability. On the early-stage side, Traction Capital invests in post-revenue ($250k – $5M TTM) companies, based in the Midwest. On the later stage side, Traction looks to acquire companies in the $500k – $3M EBITDA range, based in Minnesota or surrounding states.

We believe in building long-term partnerships with entrepreneurs and small businesses, providing not only capital but also strategic guidance and operational support. We work alongside teams to accelerate growth, refine business models, and unlock value for all stakeholders.

In addition to financial investment, we provide hands-on support in areas such as:

  • Strategic guidance and business development
  • Self-implementation of EOS
  • Budgeting and financial oversight assistance
  • Access to our network of industry experts and advisors
  • Operational improvements and scaling strategies
  • Leadership development and talent recruitment
  • Sales and Marketing oversight
  • Capital raise assistance or execution
  • Other as needed

We source investment opportunities through:

  • Strong network referrals
  • Active participation in the Midwest startup ecosystem
  • Collaboration with accelerators and incubators
  • Ongoing outreach to innovative founders

Our check size on the early-stage side ranges from $500k – $1M. On the acquisitions side, we invest in companies in the $500k – $3M EBITDA range.

Yes! We welcome founders to reach out directly using this link. Our team evaluates all opportunities that align with our investment criteria.

We are industry-agnostic, but we have a particular focus on:

  • Technology and software
  • Manufacturing and industrials
  • E-commerce
  • And more!

We do not invest in medical device and brick and mortar.

Our team works closely with portfolio companies but does not manage day-to-day operations. We provide strategic input, help address challenges, and serve as an active board member to ensure the company is progressing towards its goals

While we are based in Minnesota, we primarily invest in growth-stage companies across the Midwest. We believe that this region offers unique opportunities for innovation and sustainable growth.

We define success by both financial returns and the positive impact we can create for founders, employees, and communities. Our goal is to build companies that not only achieve impressive growth but also create lasting value.

  • Step 1: Initial introduction (via network or direct contact)
  • Step 2: Initial materials review and conversation
  • Step 3: Additional conversations as needed until a term sheet is issued
  • Step 4: Due diligence process, including financial review, market analysis, and team assessment
  • Step 5: Partnership and growth-focused collaboration

Yes! We actively support our portfolio companies as they scale, including helping them navigate follow-on rounds of funding, whether that be through additional capital from our fund or connections to other investors.

Our Referral Program rewards individuals who introduce us to privately held Midwest businesses that may be a fit for acquisition by Traction Capital. If your referral results in a completed acquisition, you’ll receive a referral fee based on the amount of capital invested — starting at $12,500 and up to $50,000.

To qualify, referrals must be off-market opportunities (not listed or brokered), submitted through our official Referral Submission Form (see Submit a Referral button above), and meet our investment criteria.

For full details, including eligibility, fee structure, and submission steps, view the Referral Program Overview.

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Scott litman

strategic growth partner

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.