Traction is not a necessary condition, and certainly not a sufficient condition for investors to get excited about your venture.
The factors that investors will consider, are as follows:
- Is the market large enough?
- Does your product/concept have a reasonable chance of being a dominant player in that market?
- Is the team committed and competent to execute this?
In all the above, if there is a negative on point No.3, then point 1 and 2 become irrelevant.
If you already have traction, all it does is improve the chances of getting funded because traction means that some of the assumptions for that business are proven in the marketplace.
But traction by itself does not mean anything unless supported by the 3 points mentioned above.