Startup Fundamentals Practice Test 2026 – All-In-One Guide to Master Business Models, Customer Validation & Market Strategies

The correct choice highlights the significance of presenting customer traction and the business model during an investor pitch. This information is crucial because investors seek to understand how a startup plans to generate revenue, who its target customers are, and whether there is validation from the market indicating that the product or service has demand. Customer traction demonstrates that there is interest and engagement from potential purchasers, which can validate the business model and suggest a potential for growth.

Including both customer traction and a comprehensive explanation of the business model allows investors to gauge the startup's current position in the market, how it stands against competitors, and what its financial viability looks like in the future. This approach offers a well-rounded perspective that is much more appealing compared to focusing solely on forecasts, pricing, or marketing strategies. Each of those areas is important, but they don't capture the complete picture of a startup's potential as effectively as showcasing customer traction alongside the business model does.