9 ways to show traction before revenue

Hi! I’m glad you’re here. You’ve made it to issue #77 of VC Demystified🪄.

My name’s Nicole - I’m a Principal at an early stage venture fund, and I know firsthand that VC can often be a black box. Breaking into the industry may feel daunting and resources can seem scarce and inaccessible. I wanted to put together a newsletter to give others the playbook I wish I had when I first started.

Today’s deep dive: How to make investors believe in your startup, without a single sale

^{My personal mission is to open as many doors as possible for other people and this newsletter is just one avenue to do that. As always, I will continue to post VC insights daily for free across my socials. This newsletter may contain paid partnerships or affiliate links.}

Read time: 5 minutes

How to make investors believe in your startup, without a single sale

If you’re pitching or evaluating a pre-revenue startup, traction is still important.

Investors want evidence that the market exists, the product resonates, and momentum is building, even before dollars come in.

Here are 9 ways to prove that demand exists, and how to make each signal more credible and data-driven:

1. Beta Testing (Proof of Early Demand)

Running beta tests shows real user interaction, not just opinions.

• Highlight adoption rates (e.g., 200 users onboarded in 2 weeks).

• Share retention or engagement metrics (e.g., 60% of testers still active after 30 days).

• Include qualitative feedback quotes from users or companies.

• If B2B, mention pilot use cases or case study results.

Investor takeaway: People are using your product, which is evidence of product-market pull.

2. Waitlist Growth (Proxy for Market Excitement)

A large or fast-growing waitlist is a powerful demand signal if it’s credible.

• Include raw numbers and growth over time (e.g., 5,000 → 12,000 signups in 45 days).

• Share conversion rates from signup to engagement (e.g., 30% completed onboarding survey).

• Show demographics or segmentation to prove alignment with your ICP.

Investor takeaway: You’re not pushing the market, the market is pulling you.

3. Customer Interviews & Surveys (Validation of Pain)

When you don’t yet have users, show depth of understanding.

• Conduct 50+ structured interviews with potential users or buyers.

• Quantify results: “78% of respondents said they’d pay for X if it solved Y.”

• Highlight repeat insights - themes that confirm a real, shared problem.

Investor takeaway: You’ve done the work to derisk the idea through real market validation.

4. Community & Audience (Proof of Engagement)

An engaged audience can be a moat and a growth engine.

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