Microtraction, an early-stage investment firm has increased its investment from $15k to $25k and reducing the percentage it takes to 7%.
Microtraction said the deal was effective from today and replaces its previous deal of $15k for 7.5%.
“We believe our financial investment is a small part of the benefits of being a Microtraction portfolio company. But we also understand that startup costs have increased over the years with a maturing African market,” th firm said.
“In order for companies we invest in to stay focused on building their product without having to worry about fundraising soon, we thought it best to increase our investment by $10k,” the firm said.
The firm aims to be the most accessible and preferred source of pre-seed funding for remarkable African tech entrepreneurs. The firm believes that though the change is minor, it strongly believe that this change is important in helping it achieve that goal as it continues to expand across Africa.
Microtraction has invested in 12 companies including Sendbox, Termii, Scout Initiative, Riby, Wallets.africa, Buycoins and Bit Sika among others.
Microtraction says the new standard deal of $25,000 investment for 7% equity will replace its former deal of $15,000 for 7.5% equity in startups and the fund is ready to do a follow on investment of $50,000 if any of its portfolio startups reach $1 million in valuation.
Founded in 2017 by Yele Bademosi, Microtration aims to accelerate Africa’s transition into a sustainable and developed economy through angel investment into remarkable African tech enterprises.
“At Microtraction, our long term mission is to accelerate Africa’s transition to a sustainable and developed economy. We do this by investing in entrepreneurs who leverage technology, capital, and innovation to try and solve some of the largest problems on the continent. If you are working on solving one of these problems, we should talk,” the firm announced.
