What Fund I Taught Us: A Managing Partner’s Perspective
By Shane Erickson When we started Traction Capital and launched Fund I, we weren’t just cutting checks. We were trying to prove that smart, values-aligned capital in the hands of gritty Minnesota founders could produce exceptional outcomes. Not just financially, but relationally. We bet on entrepreneurs in the Upper Midwest, folks who’d proven there was […]
Introducing Fund II: Doubling Down on the Midwest
By Brian Cox At Traction Capital, we believe the next generation of standout companies is being built far from the coasts. With Fund II, we’re doubling down on the Midwest, investing in and acquiring strong, scalable businesses with roots in Minnesota and the surrounding region. A Hybrid Approach: Investing and Acquiring Fund II is a […]
Traction Capital Announces Fund II to Fuel the Next Generation of Minnesota Start-Ups
MINNEAPOLIS, June 24, 2025 /PRNewswire/ — Traction Capital, a Minnesota-based venture capital and growth equity firm, announces the launch of Fund II, its second investment fund focused on scaling early-stage businesses in Minnesota and neighboring states. Since its March launch, Fund II has raised over $30M in subscriptions, with a target of $40M-60M. The fund has already invested in two local companies: Blank Metal, […]
Selling Your Business: Private Equity Misconceptions Many Business Owners Face
By Ellie Pigott Selling your business can provide you with financial flexibility, free up time from day-to-day responsibilities, allow for retirement or lifestyle changes and much more. However, many businesses owners are hesitant due to common private equity misconceptions. Some of these PE misconceptions and fears include incoming layoffs, “stripping and flipping”, strategic misalignments, loss […]
Venture Capital Fund Misconceptions Many Investors Face
By Ellie Pigott Investing in a venture capital fund can be a great way for investors to diversify wealth beyond traditional means like stocks and bonds. However, many shy away from this potentially lucrative avenue because of uncertainties and common VC misconceptions surrounding returns, success rates, involvement and theses among funds. In this blog we’ll […]
Top 15 Venture Capital Terms Every Founder Needs to Know
By Ellie Pigott Common Venture Capital Terms Raising funding can be complex. Here are a few common venture capital terms for startups to know when navigating the VC world. 1. Liquidation Preference Liquidation Preference refers to the order of which the investors in the company get paid in the event the company goes under. Typically […]
Top 10 Venture Capital Terms for Investors
By Ellie Pigott Common Venture Capital Terms for Investors Venture Capital (VC) provides an excellent opportunity to invest beyond the stock market. However, for those new to it, the terminology can be confusing. Here are a few common venture capital terms every investor needs to know when considering a venture capital investment. 1. Limited Partner […]