Traction Capital is a Minneapolis venture capital and private equity firm made up of successful business owners and entrepreneurs. As founders with Minnesota roots, we are committed to our local startup ecosystem and invest in startups and acquire businesses in Minnesota and neighboring states.
Our Focus Fund II invests in a diverse portfolio of promising businesses with an anticipated liquidity event in 3-7 years. We invest in startups in a variety of verticals such as SaaS, ecommerce, staffing, manufacturing, consumer goods and more.
We target essential enduring industries that are foundational to the economy and are poised for sustainable growth. These include:
Midwest with a preference for Minnesota.
Early-stage and middle market growth companies
Businesses with a clear path to rapid growth and large market potential
Venture capital and private equity investment opportunities for our Focus Fund II are privately sourced through an established network of investors, entrepreneurs, EOS® implementers, partners, consultants, and other professionals.
There is a void of investment resources available to promising businesses that are in the “capital gap” between early and middle market stages.
More than just financial capital is needed. Most companies in this stage lack the intellectual and human capital required to reach their full potential.
Venture Capital and Private Equity funds collectively focus on larger, later-stage deals. This has created a supply/demand imbalance. The high levels of “dry powder” (capital to be invested) is driving higher valuations for transactions and exits.
A highly-disciplined, focused approach to investing in this underserved early-stage and lower middle market can reduce risk while also taking advantage of inefficiencies and supply-demand market dynamics to produce greater returns.
If you have a qualified opportunity that aligns with our criteria, send a referral our way! Traction Capital values connections to potential investments and offers a competitive referral fee for acquisition opportunities that lead to successful capital deployment.
Fill out our referral form with the business name, what they do, your connection to the business, and roughly the size if you’re aware. Then we’ll set up a first meeting to discuss the opportunity! Feel free to contact us with any questions.
Ready to grow your investment portfolio while supporting Midwest entrepreneurs? Connect with Traction Capital to explore exclusive opportunities in our fund. Let’s build success together—reach out today to learn more.
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.
