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  2. What persuades investors better: overall traction or...

What persuades investors better: overall traction or amount of paid users?

Maria Loleyt
2 replies
Hey guys! 2023 seems to be a very challenging year for those who are trying to attract funding on an early stage (pre-seed or seed), isn’t it? What is your opinion or experience regarding the persuasive traction: is that better to show that there are 10k+ free users of your product or 50-100 paid users? What is more convincing for investors? I am asking this because it affects the whole marketing strategy of a newly launched startup: should it invest in growing overall user base or should it invest in paid users? It would be priceless to learn from your experience and opinions. Especially if you raised some funding recently)) All best to all of you!

Replies

Andrey Bozhjev
In my opinion, demonstrating 50-100 paid users will be more convincing than having 10 thousand or more free users. You will confirm the audience's willingness to pay, i.e. you will prove the value of your solution. This will probably be crucial for funding your startup.
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Vyacheslav Suskov
You must also have a good product. Otherwise, all those paid users may demand refunds soon after.
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