There is a void of investment resources available to promising businesses that are in the “capital gap” between early and middle market stages.
Traction Capital is a hybrid private equity and venture capital firm dedicated to making investments in, or acquisitions of, early-stage and lower middle market companies that are stuck in the “capital gap.” Our Focus Fund I is targeting high potential businesses with a focus on companies based in Minnesota.
The principals at Traction Capital believe that investing financial, human and intellectual capital with a proven business management process during this critical, yet underserved, stage can provide higher valuations, greater influence, faster growth and ultimately stronger returns on investment.
Our investment strategy is centered around the following core beliefs:
More than just financial capital, most companies in this stage lack the intellectual and human capital required to reach their full potential.
VC and PE funds collectively focused on larger, later-stage deals have created a supply/demand imbalance due to their high levels of “dry powder” (capital to be invested) that is driving higher valuations for transactions and exits.
A highly-disciplined, focused approach to investing in the 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.
> Traction Capital has an 8-step approach for identifying, qualifying, analyzing, valuing, negotiating, structuring, developing, optimizing and exiting businesses that is inspired by the Traction® EOS® (Entrepreneurial Operating System).
Traction Capital or the Focus Fund I are not affiliated in any manner with Traction® and EOS®.
INVESTORS & MENTORS
Co-Founder and CEO of Magnet 360. Matt is a technology visionary, adaptive leader, and initiator of entrepreneurial growth in the local and national tech communities. He is also a graduate of the Integral Leadership Program from the Stagen Leadership Academy.
President and CEO of Fun.com. Tom is an experienced entrepreneur with expertise in business management, corporate culture, operational efficiency, SEO and digital marketing, graphic design, process improvement, implementation, Web and app development, and domain acquisitions
An experienced entrepreneur, Jeff has founded, owned and invested in dozens of businesses, nationwide. He is currently leading Cedar Valley Exteriors and a Cryptocurrency mining operation in Duluth.
Partner at Added Value Consulting Group and 40 Ventures. John is an experienced entrepreneur with expertise in branding, strategic planning, marketing, sales and business development. Recipient of Minnesota Cup, ACG Bold Award and Minnesota Business Real Power 50 honors.
Consultant and Advisor. Wade is an experienced and proven executive with strategic vision, financial expertise and the ability to develop innovative solutions in complex situation. He most recently served as the COO and CFO of UltraLox.
Consultant and Advisor. Ed is a seasoned sales and marketing professional with expertise in business development, communications, product development, domestic and oversees production outsourcing, workflow processes, training and team building.