Starting a business is inherently a catch-22. The majority of internet marketers start a business in order to growth their personal wealth, but they typically don’t have the finances to bootstrap their business in the very beginning of its growth. Not every business needs outside investment – many freelancers and small internet entrepreneurs will never talk to a single investor during their entire product cycle – but more ambitious startups and application developers normally go through one or more investment phases where they seek outside financing for their ventures.

Traction, for a start-up, is the measure of how well the business model is being accepted by its target market. Enough traction means that you have more than just an idea, that you have put your vision into motion and that you have customers/ users who support your business. Traction is the life blood of the business! One of the formulas to a great pitch to a potential investor always includes traction. Showing potential investors that you have “enough traction” is the most persuasive evidence that your business is worth investing in.

The doors of the elevator opens, you get in, and, to your surprise, so does the investor that you’ve been trying to get hold of for months. Now you have your chance to tell him about your idea, but you only have as long as the elevator-ride lasts to impress him.

Angel Investors are equity investors who provide capital for start-up business or growing firms in exchange for company shares or convertible debt. Angel investors put their money in companies, often start-ups, with the aim of eventually getting high returns once the business has matured and becomes profitable. Angel financing often bridge the bootstrapped capital and the venture financing that entrepreneurs hope to get farther down the way.