Early Traction Metrics for Pre-Revenue Startups

In the fast-paced world of startups, especially those still pre-revenue, early traction metrics are vital indicators of future success. For investors and founders alike, understanding key signals such as user engagement, customer acquisition, and product-market fit can mean the difference between backing a promising venture or missing out.

Metrics such as the ratio of Daily Active Users (DAU) to Monthly Active Users (MAU), cost per acquisition, and Net Promoter Score (NPS) offer deep insights into a startup’s growth potential and market readiness. As startup competition intensifies in Africa, mastering these early indicators helps stakeholders make informed decisions and spot the startups most likely to thrive in Africa’s dynamic tech ecosystem.

This guide breaks down essential early traction metrics and strategies that pre-revenue startups can use to demonstrate traction, signal momentum, and ultimately secure seed or early-stage funding.

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Key User Engagement Metrics for Startups

User engagement metrics measure how frequently and meaningfully users interact with a product. These metrics are a leading indicator of user interest, satisfaction, loyalty, and ultimately, retention - all of which are crucial for demonstrating early traction.

 User engagement can be broken down into four categories:

• User activity metrics: How often users engage with your product or return to it (weekly, monthly, daily)
• User session metrics: How user engagement breaks down into sessions
• Feature engagement metrics: How users interact with the features of your product
• User journey metrics: How users progress through key product experiences