I find myself working on a startup and I would like to unravel this mystery with traction. How mcuh should be the amount required to spend on ppc to get traction for a product

Actually it depends upon your budget how much you can invest.

It completely depends upon you that how much do you want to use in PPC advertisements. Getting traction is depend on quality of your ads, targeted keywords and your services.

Well that's just a matter of time and it totally depends upon how much do you offer as quality.

This is just depend on you budgets and how to select your keyword.

You wont get a firm answer on the amount you can expect to spend as mentioned above. However what I can tell you from experience is you need to do some serious keyword research before investing any money. Find high search volume keywords with very little competition. Also remember that the more you can target your advertising, the more effective it'll be. Using both of these will help you save quite a bit of money.

If you are in the startup phase I'd also look more towards homegrown alternatives before jumping straight to PPC. Stuff like offline marketing, viral marketing, social media marketing, etc. But I dont know your product or service so I can't promise you that that is the right solution either.

Their is no restriction in adwords for starting PPC for your site. It's depends on you how much you want to spend? you can set your daily budget as per your need.