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Traction Capital is a hybrid venture capital and private equity firm based in Wayzata, Minnesota. Founded in 2011 by a team of entrepreneurs with successful exit experiences, the firm focuses on supporting Midwest entrepreneurs and small businesses. Traction Capital provides not only funding but also mentorship and operational support to help businesses scale successfully.
The firm manages a total of $30 million in assets under management (AUM) and has launched its second fund, targeting $40-60 million. Traction Capital primarily invests in growth-stage companies, emphasizing long-term partnerships with entrepreneurs. The firm operates from its headquarters in Minnesota and has a strong commitment to the local business community.
Notable milestones include successful exits such as HealthSimple, acquired by Johnson & Johnson, and Enstratus, acquired by Dell. The firm’s approach integrates the Entrepreneurial Operating System (EOS) to enhance operational efficiency and growth within its portfolio companies.
Traction Capital invests in growth-stage companies primarily located in the Midwest, with a specific focus on Minnesota. The firm targets post-revenue businesses with annual sales between $250,000 and $5 million, as well as established companies with EBITDA ranging from $500,000 to $3 million. While the firm is industry-agnostic, it emphasizes sectors such as technology, software, manufacturing, and e-commerce.
The investment strategy includes check sizes ranging from $250,000 to $5 million, with a preference for operational efficiency and growth through the Entrepreneurial Operating System (EOS). Traction Capital seeks to partner with entrepreneurs who demonstrate a strong commitment to their business and a clear vision for growth. The firm values long-term relationships and aims to provide both financial support and strategic guidance to its portfolio companies.
Traction Capital has a diverse portfolio that includes notable companies such as:
These companies have achieved significant milestones and successful exits under Traction Capital's guidance, showcasing the firm's ability to enhance growth and operational efficiency.
Shane Erickson: Founder & Managing Partner. Shane has extensive experience in entrepreneurship and venture capital, having successfully led multiple startups to exit. He holds a degree in Business Administration.
Brian Cox: Integrator / Partner. Brian brings a wealth of operational expertise and has a background in managing growth-stage companies. He has a strong focus on strategic planning and execution.
Peyton Green: VP of Investments / Partner. Peyton specializes in sourcing and evaluating investment opportunities, with a keen eye for emerging trends in technology and e-commerce.
Matt Meents: Strategic Growth Partner. Matt has a background in operational management and works closely with portfolio companies to enhance their growth strategies.
Chris Carey: Strategic Growth Partner. Chris focuses on building partnerships and expanding market reach for portfolio companies.
Scott Litman: Strategic Growth Partner. Scott has a strong background in finance and investment, providing valuable insights into capital management.
Dan Mallin: Strategic Growth Partner. Dan specializes in operational efficiency and works with companies to implement best practices.
Jo Ann Buckholz: VP of Finance & Operations. Jo Ann oversees financial management and operational processes within the firm.
John Klick: EOS® Implementer. John is responsible for implementing the Entrepreneurial Operating System (EOS) within portfolio companies to drive operational efficiency.
Ellie Pigott: Analyst. Ellie supports the investment team with research and analysis of potential investment opportunities.
To pitch Traction Capital, founders should visit their website at tractioncapital.com and submit their pitch through the provided application form. It is important to include a comprehensive pitch deck that outlines the business model, market opportunity, financial projections, and the founding team’s background.
Traction Capital prefers warm introductions but is open to direct submissions through their website. Founders can expect a response within a few weeks, depending on the volume of applications received. Clear and concise communication is key to making a strong impression.
Traction Capital partners with the Entrepreneurs’ Organization to run the EO Accelerator program. This program helps Minnesota entrepreneurs grow through peer-to-peer learning groups, quarterly learning events, and networking opportunities.
Eligibility for the EO Accelerator program includes being a Minnesota-based entrepreneur with a commitment to growth. Interested individuals can apply through the Entrepreneurs’ Organization's website.
In March 2025, Traction Capital launched its second fund, targeting $40-60 million, with over $30 million raised by June 2025. This fund aims to continue supporting growth-stage companies in the Midwest.
Recent investments include Blank Metal, which focuses on AI integration, and PARQA, specializing in staffing tech consulting. Additionally, Traction Capital has invested in Twyst Wellness, further expanding its portfolio in the health and wellness sector.
Traction Capital remains active in supporting its portfolio companies, utilizing the Entrepreneurial Operating System (EOS) to enhance operational efficiency and growth.
What are Traction Capital's investment criteria?
Traction Capital primarily invests in growth-stage companies located in the Midwest, targeting post-revenue businesses with annual sales between $250,000 and $5 million, as well as established companies with EBITDA ranging from $500,000 to $3 million. The firm emphasizes sectors such as technology, manufacturing, and e-commerce.
How can I apply or pitch to Traction Capital?
Founders can pitch to Traction Capital through their website at tractioncapital.com. It is recommended to include a detailed business plan, financial projections, and information about the founding team in the pitch deck.
What makes Traction Capital different from other investors?
Traction Capital combines venture capital and private equity approaches, focusing on operational guidance and strategic support alongside financial investment. The firm utilizes the Entrepreneurial Operating System (EOS) to enhance efficiency and growth within its portfolio companies.
What is Traction Capital's geographic scope?
The firm primarily invests in the Midwest, with a strong preference for companies based in Minnesota. However, they are open to opportunities in neighboring states.
What is the typical check size for investments?
Traction Capital typically invests between $250,000 and $5 million in growth-stage companies. The firm may also consider larger investments for established businesses.
What kind of post-investment involvement does Traction Capital have?
Traction Capital emphasizes building long-term partnerships with entrepreneurs, providing operational guidance, strategic advice, and access to a network of experienced industry leaders to support portfolio companies in achieving their growth objectives.
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