Microtraction, an early-stage venture capital business that invests in African technology startups at the pre-seed level, has announced that the first closure of its second fund has reached $15 million in United States dollars.
Yele Bademosi and Kwamena Afful are credited with establishing Microtraction in 2017, and the company has since invested in a total of 36 firms across the countries of Nigeria, Ghana, Kenya, and Rwanda with the assistance of PAVE Investments, Michael Seibel, Andy Volk, and Chris Shultz.
Companies like Riby, Accounteer, Cowrywise, Thank U Cash, 54gene, Wallet.ng, Schoolable, 54gene, Termini, Pivo, Bit Sika, and Raise, which have all raised more than US$10 million in capital, are part of their portfolio.
Microtraction said it had “carefully and deliberately” looked for the founders, general partners, and limited partners who would invest in its second fund, the Community Fund.
The first closure of US$15 million has now been made, and it was made possible by LPs likes and others. Over thirty founders of African startups backed by venture capital, such as Shola Akinlade of Paystack, Razaq Ahmed of Cowrywise, Francis Osifo of 54gene, Odun Eweniyi of Piggyvest, and Jesse Ghansah of Float, are LPs in this community fund.
As a unit, we have no problem venturing into uncharted territory and laying the framework for forthcoming developments. Consider that the ecosystem for African startups is still in its formative stages and that it will require a group of people who are well-connected, on the same page, and highly motivated to assist in its expansion and development. Yele Bademosi, one of Microtraction’s founding partners, said, “As a fund and a community, we look forward to working with our members to keep improving Africa’s innovation infrastructure.
With the option of a quick top-up of up to US$350,000, the fund will write the first checks for US$100,000 to 7% of early-stage African startups in different industries and parts of Africa.
There is also an option for a speedy top-up of up to US$350,000, and the fund will do this. as long as Microtraction’s investment does not exceed 25 per cent of the total amount raised by the firm in its subsequent official funding round.
Twenty different investments have been made so far with the help of this community fund. Twenty additional investments have been made so far with the help of this community fund.