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"Show Me Traction!"

Read time: 3 minutes

Welcome to David Beats Goliath, where we challenge the Goliaths of conventional thinking.

What is Traction?

Traction proves that your idea is more than just a concept—it’s gaining momentum and demonstrating growth potential!

It's one of the key factors investors look for when evaluating a business.

But maybe you're thinking:

I hear you.

It's easy to feel like you're stuck in a chicken-and-egg situation.

You need funding to build, but investors want to see traction before they hand over capital.

So how do you make it happen?

3 Ways to Show Traction Pre-Raise

Traction isn't always about huge sales or rapid growth right away. Early on, it varies by business—but what matters is showing progress, proving demand, and demonstrating potential.

Below, I share with you three ways startups can do just that.

1. MOU Signing

For B2B startups, one of the best ways to show traction is by securing MOUs (Memorandums of Understanding).

An MOU is like a handshake in writing—outlining the key terms and goals between two parties before signing a formal contract.

While not legally binding, MOUs signal that both parties are serious about collaborating, and they lay the groundwork for future deals.

More importantly, MOUs show investors that your startup has:

1. A serious network
2. Prospective buyers
3. The ability to close deals

MOUs signal progress and commitment, exactly the kind of momentum that builds investor confidence and drives deals forward.

2. Community Building

I recently interviewed Thanh Le, the founder of Coin98, and he shared a counterintuitive insight:

At first, this might seem surprising, but it makes perfect sense.

It’s like how K-pop groups generate massive hype and a devoted fan base before their official debut. The excitement and energy build long before the product—the music—even hits the market.

For startups, the same principle applies.

If you can rally people around your vision, get them excited, and even inspire them to support your cause financially, you’re showing major traction. In the eyes of investors, that's gold.

Here are some platforms that not only help you raise funds but also generate buzz and excitement around your vision:

• ​Kickstarter​
• ​Indiegogo​
• ​StartEngine​

Don't forget to leverage social media platforms as well. As a founder, your brand is your company's brand!

3. User Waitlisting

A waitlist signals strong demand.

Investors love it when there's a clear indicator that people are eager for your product or service. And that's exactly what a waitlist does.

Some effective ways to build a waitlist include:

• Exclusive Early Access: Offer early access to select users or those who join the waitlist, creating a sense of exclusivity and urgency.
• Referral Incentives: Encourage people to invite friends by offering perks or bonuses for each referral.
• Sneak Peeks: Share behind-the-scenes content or previews of your product to keep people excited and engaged while they wait.
• Partnerships and Collaborations: Team up with influencers or related brands to promote your waitlist to their audience, increasing your reach.

Although there's some overlap in the process, substantively speaking, building a waitlist is different from building a community.

• Waitlist focuses on collecting committed, future users who are ready to convert and use/buy your product or service!
• Community emphasizes nurturing relationships, and creating long-term loyalty around shared values or interests!

Ultimately, you want to aim to do both!

Korea Blockchain Week

This week has been a whirlwind of back-to-back meetings in Korea.

I’ve crossed paths with a few crypto billionaires and countless hustling crypto entrepreneurs.

What really stands out about the crypto community is their incredible ability to generate buzz and build momentum—long before their products even hit the market.

By blending community engagement, scarcity, giveaways, and strategic hype, crypto founders create massive traction early on.

It’s a playbook every founder can learn from, no matter your industry or thoughts on crypto.

Curious about how they do it? I’d be happy to break down their tactics—it’s surprisingly consistent and highly effective. Just reply to this email and let me know!

Until next week!