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 businesses in Minnesota and neighboring states.
Our Focus Fund I invests in a diverse portfolio of promising, undervalued 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 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 for our Focus Fund I are privately sourced through an established network of investors, entrepreneurs, EOS® implementers, partners, consultants, and other professionals.
Our Focus Fund I 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 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.