The Steele Startup Traction Matrix:
An interactive tool that shows early stage investor expectations.
Start by choosing Pre-Seed, Seed, or Series A. The tables change. Scroll down to your sector to see Good, Strong and Exceptional Traction
Traction benchmarks across nine sectors — Enterprise SaaS, Fintech, B2C / Consumer, Deeptech, Industrial Biotech, Pharma Biotech, Healthtech, Digital Health, and Medical Devices — US data updated quarterly, with Canadian context at every stage.
Free Resource - No Email Required or Pay Wall
Q3 - 2026 Version. Last Updated Oct 8, 2026
Jenny Yang, RiSC Capital, Vancouver
“This is a fantastic resource for founders highlighting what investors are looking for when startups are raising pre-seed to series A.”
Danielle Joworski, Founder Advisor, Waterloo
“The Steele Startup Traction Matrix provides clear insights around investor expectations and investment realities for founders. A plan and strategy can be built around this combination.”
Lauren Taylor, CEO, NDVC, San Francisco
“Founders hear a lot of thought leadership; what they don’t always get is a tool they can use right now.”
Viveik Vivekananthan, CEO, BookHealth AI
“It’s a great blueprint to follow and it enables founders to have the appropriate investor conversations at the right time.”
About The Steele Startup Traction Matrix
Why this matrix exists
Founders waste months pitching investors who were never going to say yes — usually because nobody told them what "enough traction" means at their stage, in their sector. Investors know these numbers. Founders mostly have to guess. The Steele Startup Traction Matrix bridges that founder funder gap: it lays out what good, strong, and exceptional traction look like at pre-seed, seed, and Series A, across nine sectors, in the metrics investors actually use.
How it's built
The matrix is compiled by Landon Steele — founder with a successful exit, 30 years in the Bay Area startup ecosystem, and an active angel investor — from a literature base of 95+ primary sources (Carta, CVCA, RBCx, NACO, BDC, Pitchbook-NVCA, and sector-specific benchmark reports), refreshed through monthly research scans and published quarterly. Every edition notes what changed. It is free, unwalled, and intended to be used — bring it to your next board meeting, mentor session, or investor-prep sprint.
What's new in the Q3 2026 edition
Dilution has eased to about 18% at both seed and Series A as valuations outpace round sizes (Carta software medians: seed $24.3M on $4.1M raised; Series A $80M on $14.4M). Public SaaS multiples have dropped to roughly 2–3x forward revenue, while private AI startups still raise at 10–50x. Median SaaS gross revenue retention fell to 84%, so we've added a GRR benchmark at Series A. Pre-seed capital is concentrating into fewer, larger SAFEs. In Canada, rounds remain smaller and growth-stage VC hit a near-decade low, but Canadian investors are increasingly focused on backing domestic companies; BC's SR&ED credit now matches the federal one and is permanent, and IRAP launched a $241M defence stream. New this edition: share any round and sector with a direct link, and print a single card.
FAQ
Common questions about the Steele Startup Traction Matrix
How much traction do I need to raise a seed round in 2026?
It depends on your sector, but for Enterprise SaaS the seed entry band is roughly $100K–$300K ARR with 10–15% month-over-month growth; strong candidates show $300K–$700K ARR. The median US seed round is $3.1M across all rounds ($4.1M for software companies) at a valuation of about $24M, with dilution near 18%. In biotech, medical devices, and deeptech, revenue is largely irrelevant at seed — milestones, IP, and validated science carry the round. The matrix above breaks this down for all nine sectors.
What do investors expect at pre-seed?
In 2026, insight and validation signals — not revenue. Most pre-seed investors expect a prototype or a signed design partner; a working demo dramatically improves close rates. Typical raises run $250K–$2M (median ~$1M) on SAFEs at a $4–6M post-money cap, with AI-native teams landing $8–15M. Capital is concentrating: the average SAFE hit a record $276K in Q2 2026, on fewer deals.
How are Canadian benchmarks different from US ones?
The traction bar is the same — Canadian investors don't expect less proof — but rounds are 40–50% smaller and valuations 30–50% lower at Series A. Canada's non-dilutive stack helps close the gap: SR&ED (enhanced limit $6M, capital expenditures eligible again, and BC's credit now permanent), NRC-IRAP (including the new $241M Defence Industry Assist stream, plus AI and Cleantech streams), and provincial programs.
Canadian early-stage investors recognize the critical role they play in backing domestic companies, and the urgency has increased in the current difficult macro and political environment — though the data does not yet reflect it. Pre-seed rounds are typically raised locally; at seed and beyond, the traditional "build in Canada, raise in the US" advice is more challenging today. Founders should still consider all options to move their companies forward, and encourage that sense of urgency from Canadian investor prospects. Stay tuned to see whether this shows up in stronger private investment data over the next few quarters, in addition to government initiatives.
How often is the Steele Startup Traction Matrix updated?
A literature scan across all nine sectors runs monthly, and a new edition of the matrix is published quarterly with a visible "what changed" note. The current edition is Q3 2026, updated October 8, 2026, built from 95+ cited primary sources.
What counts as traction if I'm pre-revenue?
Depends on the sector: signed LOIs and paid design partners (SaaS), retention and organic growth (consumer), granted patents and TRL progression (deeptech), pilots and regulatory milestones (health and biotech), and non-dilutive grant wins everywhere — investors treat competitive grants as third-party validation. An unpaid pilot, on its own, is not traction.
Can I share a specific section?
Yes. Every sector card has a Share button that copies a direct link to that round and sector, which opens as a clean single-card view, plus a Print button for a one-page copy.
How do I cite this resource?
Steele, L. "Steele Startup Traction Matrix," Steele Consulting, Q3 2026 edition, updated October 8, 2026. www.steeleconsultinggroup.com/traction-guidance
Citation and republication with attribution are welcome — that's what it's for!
Bruce Brown
Founder Advisor, Waterloo
“We share it with all new founders in our Investment Readiness workshops.
The Steele Startup Traction Matrix provides specific information tailored by sector and funding round, and it provides insights into US/Canadian differences.
It will help determine when you are ready to raise, at what valuation and how competitive your investment opportunity will be to potential investors."
David Tsui
Director General, Business Growth
Pacific Economic Development Canada
"This is awesome - keep accelerating Landon."
Juno, Landon's Dog
“Mom is the best, and takes me for walks.”
