Saturday, 10 October 2026

What makes a start-up worth investing in?

Investors talk about “traction” and “unit economics”. Here is what those phrases mean in practice.

Illustration for “What makes a start-up worth investing in?”
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Traction is evidence that customers want a product: growing users, repeat purchases, or revenue that keeps climbing.

The bigger picture

Unit economics asks a simpler question: does the business make money on each customer once the cost of winning and serving them is counted? A company can grow fast and still lose money on every sale.

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