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Building on the success of its first fund, Traction Capital will continue to invest in and acquire high-potential businesses, offering "smart" capital - financial backing combined with strategic guidance to help founders grow. Fund II will target Midwest companies with strong growth potential, scalable models, and committed leadership. The firm, made up of entrepreneurs and business owners, specializes in working with founders ready to scale, using a hands-on approach to create value. Traction Capital also leverages its large network of investors, over 80% of whom are small business owners, to provide resources and expertise across industries.

"We're excited to launch Fund II and continue our support of outstanding founders," said Shane Erickson, Managing Partner at Traction Capital. "As entrepreneurs, we know how tough scaling a business can be. That's why we don't just invest; we offer hands-on experience to help our portfolio companies grow. The success of our first fund proved that when you combine capital with the right strategy, expertise, and a solid framework like EOS®, big things happen. With Fund II, we're doubling down on our commitment to fueling Midwest businesses."

To support the growth of Fund II, Traction Capital welcomed Matt Meents as a Strategic Growth Partner. With 25+ years of experience scaling companies, Meents is a leader in the startup space. As Co-Founder & CEO of Magnet360, he grew the company to $50M in annual revenue before its acquisition in 2016. He later co-founded Yardstik, where he drove growth before transitioning to a board role. At Traction Capital, Meents will guide founders through growth challenges and scaling opportunities.

Traction Capital's first fund successfully invested in 13 companies and completed two acquisitions, helping them reach major milestones. Notably, Kwikly, a three-time Inc. 5000 honoree, was named Minnesota's fastest-growing private company in 2024. GoRout saw a dramatic expansion in growth and product offerings, while TroutRoutes achieved a successful exit through its sale to onX. Additionally, Traction Capital facilitated additional capital raises for five portfolio companies, securing further funding for their growth.