Traction Capital is comprised of successful business owners and entrepreneurs dedicated to growing businesses In Minnesota and neighboring states. Our Focus Fund I invests in a diversified portfolio of promising, undervalued businesses with an anticipated near to mid-term liquidity event in 3-7 years. We invest both financial and “smart” capital in our portfolio companies, giving them access to the expertise and resources that exist throughout our team, advisors, and investors. We believe this support, combined with the proven business management process of the Entrepreneur Operating System®, sets businesses up to quickly scale and exit at attractive valuations.
Venture capital and private equity investment opportunities are privately sourced through an established network of investors, entrepreneurs, EOS® implementers, partners, consultants, and other professionals.
Our investment strategy is centered around the following core beliefs:
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, 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.